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Ghana and Creditors Agree on Debt Restructuring

Ghanas Debt Restructuring
Ghanas Debt Restructuring Copyright © Stears 2024

The Ghanaian government has reached an agreement with its official creditors to restructure some of its foreign debts, an official statement from the Ministry of Finance said late Friday.

The agreement paved the way for Ghana to access the second tranche of 600 million U.S. dollars in financing from the International Monetary Fund (IMF) under a 3-billion-U.S.-dollar extended credit facility.

“This development constitutes a significant positive step toward restoring Ghana’s long-term debt sustainability,” the statement said.

The statement also reiterated the government’s commitment to restoring long-term debt sustainability and strengthening macroeconomic stability.

Congratulating Ghana on the agreement, IMF Managing Director Kristalina Georgieva said it clears the path for the IMF Executive Board’s consideration of the first review of Ghana’s three-year extended credit facility arrangement in the next few days.

“I thank the official creditor committee, especially the co-chairs, China and France, for all their work to reach this agreement,” Georgieva said in a statement.

Over recent years, Ghana, once one of the fastest-growing economies in Africa, has faced severe economic crises marked by high fiscal deficits, escalating public debts, exchange rate fluctuations, high inflation, and living costs.

The Ghanaian government secured the 3-billion-U.S. dollar loan from the IMF in May last year, hoping to steer the economy toward recovery.

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