Vice President of IMANI Africa, Bright Simons, has disclosed that Ghana’s current agreement with the International Monetary Fund (IMF) prevents the Mahama administration from issuing sovereign guarantees, describing the restriction as a core element of the country’s ongoing IMF-supported programme.
Speaking in an interview on Channel One TV on Monday, January 5, Simons explained that the prohibition is embedded in the fiscal rules governing Ghana’s Extended Credit Facility (ECF) arrangement with the Fund.
“The government is barred from issuing sovereign guarantees. I don’t know what the exemption criteria are, but per standard, we are not allowed to issue sovereign guarantees,” he stated.
IMF Conditions Reinforce Fiscal Controls
Simons’ comments come in the wake of the IMF Executive Board’s approval of the Fifth Review of Ghana’s ECF programme on Wednesday, December 17, 2025. The review acknowledged Ghana’s strong performance, particularly in restoring macroeconomic stability, strengthening public finances, and laying the groundwork for sustained economic recovery.
Following the approval, Ghana is expected to receive a sixth tranche of approximately US$380 million, providing further budgetary support under the programme.
Why Sovereign Guarantees Are Restricted
According to Simons, limitations such as the ban on sovereign guarantees are intentionally designed to curb fiscal excesses and limit government exposure to future liabilities.
“These restrictions are part of a broader framework to stop us from spending beyond our means,” he explained, adding that unchecked guarantees could undermine debt sustainability and reverse recent economic gains.
He stressed that fiscal safeguards under the IMF programme are not merely technical requirements but essential tools for protecting Ghana’s long-term economic stability and restoring investor confidence.
Safeguarding Economic Recovery
Simons emphasised that while the restrictions may limit government flexibility in the short term, they serve a critical role in preventing reckless public spending and shielding the economy from future shocks.
“There are a lot of things in place now to ensure discipline,” he noted, underscoring the IMF programme’s focus on rebuilding Ghana’s financial credibility and ensuring prudent economic management.
