Ghana's Debt Burden Eases with $2.8bn Relief Package after Finalizing MoU with Official Creditors

Jan 29, 2025 - 13:53

Jan 29, 2025 - 13:56

Ghana's Debt Burden Eases with $2.8bn Relief Package after Finalizing MoU with Official Creditors

Dr. Cassiel Ato Forson is Ghana's Finance Minister .

Accra, Ghana - 29 Jan, 2025 - Ghana has secured a significant debt relief agreement, worth $2.8 billion, after all 25 members of its official creditor committee signed a Memorandum of Understanding (MOU) under the G20 Common Framework for Debt Treatment.

This milestone achievement is expected to provide Ghana with substantial fiscal breathing space, enabling the country to implement crucial reforms and stabilize its economy.

The debt relief agreement, announced by Finance Minister Dr. Cassiel Ato Forson, marks a critical step towards restoring Ghana's long-term debt sustainability. The deal provides significant debt service relief during the IMF-supported programme period, allowing Ghana to redirect financial resources towards supporting economic recovery and growth.

“The Government of the Republic of Ghana is pleased to announce that the Memorandum of Understanding (MoU) reached with its Official Creditor Committee (OCC) has been signed by all Participating Creditor Countries”, Finance Minister, Dr. Cassiel Ato Forson, told the media in Accra on Wednesday, January 29, 2025.

“The signing of the MoU formalises the debt treatment agreed upon with Official Creditors and marks a crucial step towards Ghana restoring long-term debt sustainability. The agreement provides significant debt service relief during the Fund-supported programme period, allowing financial resources to be directed towards supporting and strengthening the economic recovery.''

“Ghana continues to engage in good faith with all commercial external creditors, striving to finalise restructuring agreements that respect Ghana’s need for debt relief and the comparability of treatment principle, the he added.

While the agreement is a major breakthrough, Ghana still needs to finalize negotiations with commercial creditors, which account for approximately $2.7 billion of the country's debt. The government is working to secure a final agreement in the coming months, which would complete Ghana's comprehensive external debt restructuring plan.

The International Monetary Fund (IMF) and the World Bank have welcomed Ghana's debt restructuring agreement, recognizing its importance in restoring debt sustainability and unlocking financial support. The agreement is also expected to help rebuild investor confidence and support Ghana's economic recovery efforts.