Ghana has reached an agreement with its official creditors on a comprehensive debt treatment under the G20 Common Framework, Finance Minister Ken Ofori-Atta has stated.
In a post on the X platform, Ofori-Atta said, “Thank you to our bilateral creditors for their support & cooperation, that has today enabled us to reach agreement with our Official Creditors on comprehensive debt treatment under the G20 Common Framework. Significant step towards long-term debt sustainability!”
The terms of the agreed debt treatment are expected to be formalised in a Memorandum of Understanding between Ghana and Official Creditors, which will then be implemented through bilateral agreements with each member of the Official Creditor Committee, a statement from the Finance Ministry said.
“The Government of Ghana looks forward to further engaging with the Official Creditors to ensure prompt implementation of the agreed terms,” the statement added.
This paves the way for the executive board of the IMF to approve the disbursement of US$600 million under the country’s US$3 billion bailout programme.
In addition, the World Bank is expected to support the Ghana Financial Stability Fund with US$250 million to help address the impact of the Domestic Debt Exchange Programme (DDEP) on the financial sector.
The managing director of the International Monetary Fund (IMF) in a statement on Friday (12 January) said, “I welcome Minister of Finance Ofori-Atta’s announcement that the Ghanaian authorities have reached an agreement in principle with their official creditors on a debt treatment, consistent with the objectives of the IMF-supported program, which aims to restore macroeconomic stability and debt sustainability, build resilience, and lay the foundations for stronger and more inclusive growth.
She added, “I want to thank the Official Creditor Committee, especially the co-chairs, China and France, for all their work to reach this agreement. This is another substantial milestone for the G20 Common Framework under which G20 creditors joined forces to agree on debt relief for Ghana.
“This agreement clears the path for IMF Executive Board consideration of the first review of Ghana’s three-year Extended Credit Facility Arrangement in the next few days. I look forward to continuing our fruitful collaboration with Ghana,” Georgieva Kristalina said.
Bilateral lenders, including China and France who co-chair the Official Creditor Committee (OCC), hold around a quarter of Ghana’s $20 billion external debt earmarked for restructuring.
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