The IMF expects Ghanaian authorities and the Official Creditor Committee to reach an agreement soon.
According to Julie Kozack, the IMF’s Director of Communications, it is critical for Ghana to complete debt restructuring talks with both domestic and external creditors.
“The next steps on debt restructuring are for the Official Creditor Committee to agree with the authorities on the specific modalities of debt relief and for the authorities to continue to engage with their external private creditors for relief on their external debt. These discussions are ongoing, and we hope that the OCC, the Official Creditor Committee, and the Ghanaian authorities will find an agreement soon. The government has recently finalized the restructuring of its domestic debt,” Julie Kozack said.
Over half of Ghana’s total debt, which includes Eurobond obligations, is attributed to external creditors, totaling approximately $52.3 billion. This underscores the vital need for the country to ensure the sustainability of its debt.
Despite being formed in May 2023, the creditor committee has not yet reached definitive decisions regarding the extent of debt reductions (haircuts) to be offered to Ghana.
Meanwhile, an IMF delegation is presently in Ghana, evaluating the nation’s economic performance. They are also preparing a report that will determine Ghana’s eligibility for the next installment of the $3 billion loan.
Ghana’s debt owed to external creditors makes up more than half of the country’s total debts, including Eurobond holders.
External debts add up to about $52.3 billion of the country’s total debts, making it a necessary requirement for the country to make its debts sustainable.
The creditor committee, which was formed in May 2023, is however yet to reach concrete conclusions on how much haircuts to give Ghana.
However, an IMF team is currently in Ghana to assess the country’s performance and also to present a report to qualify the country for the next tranche of the $3 billion loan.