Professor Godfred Bokpin Explains Why He Advocates for the Extension of the Current IMF Program

Professor Godfred Bokpin, an expert in finance and economics at the University of Ghana, has urged for an 18-month extension of the country’s ongoing IMF programme to prevent potential financial instability. In a recent interview with JoyFM on April 3, 2025, he argued that this extension is crucial for ensuring the continued economic stability of Ghana amidst global uncertainties that could jeopardize its recovery.

Bokpin acknowledged that the government has made notable progress in fiscal management, such as reducing expenditures and implementing vital structural reforms. However, he stressed that these efforts alone might not be sufficient to shield the country from long-term financial risks without additional support from the International Monetary Fund (IMF). He emphasized that the current IMF programme has played a key role in stabilizing Ghana’s economy, but the road ahead remains fraught with challenges. Extending the programme for another 18 months would offer the country more time to implement necessary adjustments and avoid economic shocks, he explained.

One of the main concerns raised by Bokpin was the substantial fiscal deficit observed in 2024, which exceeded expectations, coupled with a growing arrears burden of over 67 billion Ghana cedis. These factors, he pointed out, highlight the need for additional time to ensure fiscal sustainability and to manage the country’s significant financing needs. Without an extension of the IMF programme, Ghana risks struggling to meet its debt obligations and fiscal targets, particularly with the upcoming elections in 2026, which often lead to political instability that could further disrupt economic policies and government spending plans.

Professor Bokpin also noted that while the government’s 2025 budget aims to address fiscal imbalances, external factors like global inflation and challenges in accessing international borrowing markets could still impede its ability to meet fiscal targets. A premature end to the IMF programme, he cautioned, could lead to severe economic consequences.

To mitigate these risks, Bokpin recommended a gradual approach to fiscal adjustments, which would allow the government more flexibility in implementing key growth-focused initiatives. These include projects aimed at job creation and building a 24-hour economy. While recognizing the government’s efforts, he emphasized the importance of balancing fiscal austerity with measures that stimulate economic growth. In conclusion, Bokpin’s call for an IMF extension reflects his belief that it is essential to safeguard Ghana’s economic recovery and ensure long-term fiscal stability.