FROM RED TO GREEN: GHANA’S $2.8BN DEBT RELIEF BOOSTS ECONOMIC RECOVERY

…as Official Creditors Sign MoU

By Leo Nelson

Ghana, led by Finance Minister, Dr Cassiel Ato Baah Forson, has successfully secured $2.8 billion in debt relief after all 25 members of its Official Creditor Committee signed a Memorandum of Understanding (MoU) for this purpose.

Co-chaired by China and France, the agreement, provides much-needed relief to Ghana, amid an International Monetary Fund (IMF) programme.

This development, finalizes an agreement initially reached under the G20 Common Framework for Debt Treatment.

In a statement released on Wednesday, the Public Relations Unit of the Ministry of Finance, announced that, “The Government of the Republic of Ghana, is pleased to announce that the Memorandum of Understanding reached with its Official Creditor Committee has been signed by all Participating Creditor Countries.”

The signing of the MoU, formalizes the debt treatment agreed upon with Official Creditors and represents a significant step towards restoring Ghana’s long-term debt sustainability.

This agreement will provide substantial debt service relief during the IMF-supported programme period, allowing financial resources to be directed towards supporting economic recovery.

Although, discussions on the remaining 7percent of Ghana’s official bilateral debt involving approximately 60 international financial institutions are ongoing, the country is nearing the completion of its external debt restructuring process.

Dr. Forson, expressed optimism regarding ongoing talks with external creditors, aiming to finalize restructuring agreements that align with Ghana’s need for debt relief.

The successful completion of these agreements, will be crucial in restoring fiscal stability and achieving the objectives of the IMF programme.

The debt relief secured under the G20 Common Framework, is expected to provide Ghana with essential fiscal breathing space to stabilize the economy, rebuild investor confidence, and implement necessary reforms.

Government officials remain committed to securing favorable outcomes from engagements with commercial creditors to complete Ghana’s comprehensive debt restructuring plan, initiated under the previous Akufo-Addo administration.