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BusinessGhana sees another 'breakthrough' in its international debt treatment

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Ghana sees another ‘breakthrough’ in its international debt treatment

The Ministry of Finance has announced that Ghana’s debt treatment with Eurobond holders adheres to the Comparability of Treatment principle, as confirmed by the country’s Official Creditor Committee (OCC). I

n a statement issued to the Ghana News Agency on Monday, July 8, the Ministry highlighted this as part of the OCC Common Framework for debt restructuring.

The Comparability of Treatment principle necessitates that Ghana meets comparable treatment of debt obligations to all other external creditors within the restructuring scope.

This approach aims to restore debt sustainability and prevent disorderly default by providing significant relief during the three-year International Monetary Fund (IMF) programme implementation.

“The Government intends to continue proactive engagement with the Steering Committees to finalize documentation and proceed promptly with the consent solicitation,” the statement read. Additionally, the government expressed gratitude to its official partners and representatives from the two Bondholders’ Committees for their constructive engagement over the past weeks.

On July 1, Ghana received a third tranche of US$360 million as part of the IMF loan-support programme. This follows an agreement reached last month with Eurobond holders, who have agreed to forego US$4.7 billion in debt, providing an additional US$4.4 billion in relief to the country.

The debt restructuring and relief efforts are critical components of Ghana’s strategy to achieve economic stability and sustainable growth.

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