Ghana, official creditors ink deal on debt treatment: statement

   Ghana and its official creditors have agreed a final deal to formalize the debt treatment plans agreed upon in January, according to a statement from the Ministry of Finance on Wednesday.

   The memorandum of understanding (MoU) with the Official Creditor Committee (OCC) marks a crucial step toward Ghana’s quest for long-term debt sustainability.

The MoU also paves the way for the Executive Board of the International Monetary Fund (IMF) to approve the second review of Ghana’s economic reforms and the release of the next tranche of 360 million U.S. dollars to the West African country as part of a 3-billion-dollar loan.

   “The Ministry of Finance, on behalf of the Republic of Ghana, extends our gratitude to all members of the OCC, particularly the committee’s co-chairs, China and France, for their unwavering commitment to assisting our country in resolving its debt issues,” Finance Minister Mohammed Amin Adam said.

   “This landmark agreement marks an extraordinary milestone in Ghana’s debt restructuring journey and will further strengthen our ambitious reform agenda with the strong support of our development partners,” Adam added.

   Ghana commenced the current economic reforms with the 3-billion-dollar loan from the IMF in May 2023, seeking to cure the challenges of debt overhang, surging inflation, exchange rate volatility, and the balance of payments crisis in the economy.

   Ghana has so far received two tranches of 600 million dollars each from the loan and is awaiting the third disbursement.