Ghana secures $2.8bn debt relief as creditors sign MoU

Ghana has successfully secured $2.8 billion in debt relief, marking a significant milestone in its efforts to restore fiscal stability and advance economic recovery. The debt relief follows the formal signing of a Memorandum of Understanding (MOU) by all 25 members of its official creditor committee, a crucial step in the G20 Common Framework for Debt Treatment.

A Crucial Agreement for Ghana’s Economic Revival

The MOU, which had initially been agreed upon in principle, now offers Ghana the necessary fiscal breathing space to carry out structural reforms. This debt treatment agreement comes at a vital time, as the country continues to implement its $3 billion International Monetary Fund (IMF) program aimed at bolstering the economy.

Finance Minister Dr. Cassiel Ato Forson expressed the government’s satisfaction with the agreement, highlighting that the MOU signing formalizes the debt treatment with official creditors. This achievement is seen as an essential move towards restoring long-term debt sustainability and ensuring that resources are allocated to strengthen Ghana’s economic recovery.

Ongoing Negotiations with International Financial Institutions

While the agreement with the official creditors is a significant win, Dr. Forson mentioned that discussions are still ongoing concerning the remaining 7% of the deal, which involves negotiations with around 60 international financial institutions. These talks are crucial to finalizing the overall restructuring plan.

Commercial Creditors Deal Yet to Be Concluded

Ghana’s journey to fiscal recovery is not without challenges. The country is still in negotiations with commercial creditors over a $2.7 billion debt arrangement. The Finance Minister assured that Ghana remains engaged in good faith with these creditors, striving to secure an agreement that aligns with Ghana’s needs for debt relief while maintaining the principle of comparability of treatment.

A Step Closer to Debt Restructuring Completion

With the official creditor committee’s MOU signed, Ghana is now closer than ever to completing its external debt restructuring process. This final step is vital to ensuring fiscal stability, reducing debt servicing burdens, and achieving the goals outlined in Ghana’s IMF-supported program.

The successful debt relief deal and ongoing negotiations with creditors reflect Ghana’s commitment to turning its economic situation around and fostering long-term financial stability. As these agreements progress, the country remains focused on its goal of sustainable growth and prosperity