Ghana Secures Agreement with Official Creditors on Debt Treatment

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Ghana has successfully finalized a deal with its official creditors to formalize the debt treatment plans that were agreed upon in January, as confirmed by a statement from the Ministry of Finance on Wednesday.

The memorandum of understanding (MoU) with the Official Creditor Committee (OCC) signifies a significant step forward in Ghana’s efforts to achieve long-term debt sustainability.

This MoU also clears the path for the International Monetary Fund’s (IMF) Executive Board to approve the second review of Ghana’s economic reforms. Upon approval, the next tranche of $360 million will be released to the West African country as part of a $3 billion loan package.

Finance Minister Mohammed Amin Adam expressed gratitude to all members of the OCC, particularly the committee’s co-chairs, China and France, for their unwavering support in resolving Ghana’s debt issues. He described the agreement as a landmark moment in Ghana’s debt restructuring journey and emphasized its importance in strengthening the country’s reform agenda with the backing of development partners.

Ghana initiated its current economic reforms with the $3 billion loan from the IMF in May 2023. The reforms aim to address challenges such as debt overhang, rising inflation, exchange rate volatility, and the balance of payments crisis in the economy.

Having already received two tranches of $600 million each from the loan, Ghana now anticipates the third disbursement to further support its economic reform agenda.

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