Ghana Reaches Crucial Agreement with Official Creditors, Paving the Way for Debt Sustainability
The Government of Ghana has announced the successful negotiation of a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC), Marking a significant step towards restoring long-term debt sustainability.
The MoU, co-chaired by China and France, formalizes an agreement in principle reached in January 2024 and provides vital debt service relief during the Fund-supported program period.
This relief will enable Ghana to allocate financial resources to key sectors such as infrastructure, healthcare, and education.
The agreement is expected to facilitate the approval by the IMF Executive Board of the second review of the Fund-supported Post Covid-19 Programme for Economic Growth (PC-PEG), unlocking US$360 million in IMF financing.
Additionally, it is anticipated to catalyze further financial assistance from development partners, particularly the World Bank.
Dr. Mohammed Amin Adam M.P., the Honourable Minister for Finance, expressed gratitude to all members of the OCC, especially co-chairs China and France, for their steadfast commitment to resolving Ghana’s debt challenges.
He described the agreement as a remarkable milestone in Ghana’s debt restructuring journey, underlining its importance in supporting the country’s ambitious reform agenda with the strong backing of development partners.
While official creditors undergo internal processes to sign the MoU, Ghana remains committed to engaging constructively with commercial external creditors to finalize restructuring agreements.
The government emphasizes its dedication to remaining in arrears with external commercial creditors until agreements aligned with the comparability of treatment principle are reached.
