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HomeBusinessGovt commends bilateral creditors for reaching debt restructuring agreement

Govt commends bilateral creditors for reaching debt restructuring agreement

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The government has commended Ghana’s bilateral creditors for reaching an agreement with the country to restructure $5.4 billion in loans.

In a statement issued by the Ministry of Finance, it said this is a significant step towards long term debt sustainability.

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The Government of Ghana and its Official Creditors under the G20 Common Framework reached an agreement, on a comprehensive Debt Treatment Beyond the Debt Service Suspension Initiative.

This follows the successful completion of the Domestic Debt Exchange Programme (DDEP) in 2023, this development constitutes a significant positive step towards restoring Ghana’s long-term debt sustainability.

“The Government of Ghana commends the support and cooperation of its Official Creditors in reaching this agreement, which demonstrates a mutual commitment to restoring debt sustainability in line with the International Monetary Fund (IMF) programme targets. The Government is confident that this debt treatment, which entails significant flow relief during the programme period, will allow for the allocation of additional financial resources towards critical public investments, particularly in healthcare, education, and infrastructure development”.

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The statement continued that 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.

It added that the Government of Ghana looks forward to further engaging with the Official Creditors to ensure prompt implementation of the agreed terms.

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