Ghana reaches deal with creditors

Ghana has finalised a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC), chaired by China and France. This agreement, stemming from negotiations initiated in January 2024, represents a pivotal step towards restoring Ghana’s long-term debt sustainability.

The MoU formalises previously reached agreements with official creditors, ensuring continued relief during the Fund-supported programme. This relief will allow Ghana to allocate vital financial resources to critical sectors such as infrastructure, healthcare, and education.

Notably, the approval of the MoU by the IMF Executive Board is anticipated to unlock a substantial tranche of US$360 million in financing. Additionally, this approval is expected to catalyse further support from development partners, particularly the World Bank.

Ghana’s commitment to equitable treatment extends to ongoing discussions with private creditors, emphasising the need for comparable agreements. Each official creditor will now proceed with internal procedures to sign the MoU, paving the way for bilateral agreements.

Finance Minister Mohammed Amin Adam expressed gratitude to the OCC, highlighting the landmark nature of the agreement and its significant implications for Ghana’s reform agenda.  Moreover, this development underscores Ghana’s proactive approach to addressing its debt challenges while garnering crucial support from international partners.

Attribution: Ghana’s Ministry of Finance official statement.