Addressing Ghana’s financial sector challenges essential to ringfence financial sector stability – IMF

The IMF's second review of Ghana's Extended Credit Facility program has emphasized the importance of addressing financial sector challenges to ensure stability.

The Bank of Ghana has implemented corrective measures, and the Ministry of Finance has begun recapitalizing state-owned banks.

The IMF highlights the need for continued progress, especially given the rise in Non-Performing Loans (NPLs), which reached 24.1% in June 2024.

The IMF advises enhancing supervision, ensuring adequate NPL provisioning, and resolving issues at Specialized Deposit-Taking Institutions and Non-Banking Financial Institutions cost-effectively. The focus is also on implementing strategies to address long-term weaknesses in state-owned banks.