Emmanuel OchayiGhana has successfully negotiated a $5.4 billion debt restructuring deal with official creditors, including the Paris Club and China.
Ghanaian Finance Minister Ken-Ofori Atta declares, “This is a significant positive step toward restoring Ghana’s long-term debt sustainability.”
Under the G20 Common Framework, the agreement is expected to trigger an immediate $1.25 billion in financing for Ghana’s economy, further bolstered by the IMF’s second $600 million disbursement and support from the World Bank.
IMF Managing Director Kristina Georgieva applauds the Official Creditor Committee, particularly co-chairs China and France, stating, “This is another substantial milestone for the G20 Common Framework under which G20 creditors joined forces to agree on debt relief for Ghana.”
As Ghana strives to meet the conditions of the IMF’s $3 billion bailout program, including reducing the public debt-to-GDP ratio to 55% by 2028, domestic debt restructuring and fiscal adjustments are already underway.
The country now turns its attention to commercial creditors, seeking further relief after suspending debt service payments in December 2022.
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Finance Minister Ken-Ofori Atta proposes a potential 40% reduction for commercial creditors, anticipating that the official creditors’ deal will strengthen negotiations.
Ofori-Atta emphasizes, “Today’s agreement with official creditors will support ongoing engagements with Ghana’s commercial creditors, including bondholders.”
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