Progress is being made in the country’s debt restructuring efforts, with only seven percent of its external debt left to be resolved.
The remaining portion primarily involves negotiations with commercial creditors and government is working to finalise agreements that align with previously established debt treatment frameworks.
Speaking during a media brief on Ghana’s Memorandum of Understanding (MoU) signing with the Official Creditor Committee (OCC), Finance Minister Dr. Cassiel Ato Baah Forson stressed government’s commitment to expediting discussions with commercial creditors.
However, the minister noted that although this seven percent may seem small, it presents a complex challenge as it requires working with 60 different institutions… each with its own unique terms.
The remaining seven percent of the debt, which amounts to US$2.7billion, involves negotiations with around 60 international banks. Unlike bondholders and official creditors, these banks do not belong to a group; meaning each must be engaged individually.
“In contrast, under the IMF G20 framework, official creditors and bondholders can be grouped together for more streamlined negotiations. However, with these banks, each engagement will need to be handled separately,” he explained further.
A timeline for engaging the banks will be announced in coming days as government works to finalise restructuring this portion of the debt, Finance Minister Forson assured. He further assured that these engagements will be guided by the ‘most favoured creditors’ clause and comparability of treatment principle to ensure fair terms for all parties.
In addition, the nation has successfully signed a Memorandum of Understanding (MoU) with all 25 participating creditor countries, a major step in its debt restructuring process and restoring debt sustainability under the IMF programme.
The nation’s debt restructuring has been a crucial element of its broader economic recovery strategy, particularly under the International Monetary Fund (IMF) programme that the country embarked on under the previous administration.
The programme required a comprehensive restructuring of Ghana’s debt to restore sustainability, with key targets including reducing the debt-to-GDP ratio to below 55% by 2028 and ensuring the debt service-to-revenue ratio does not exceed 18% from that year onward.
Government has already completed several critical phases of the restructuring process. In 2023, Ghana successfully executed a domestic debt exchange programme involving approximately GH¢203.4billion. Government has assured that this last stage of restructuring will not derail the progress made so far.
