Finance Minister Ken Ofori-Atta, along with other government officials, is scheduled to visit China on January 23 with the aim of restructuring Ghana’s $5.4 billion bilateral debt, a significant portion of which is owed to China.
China, along with France, co-chairs Ghana’s Official Creditor Committee. The agreement reached with this committee is crucial for accessing additional funds from a $3 billion International Monetary Fund (IMF) bailout package.
Simultaneously, Ghana will resume discussions with its international bondholders next week, building on the momentum generated by a recent deal to restructure $5.4 billion of bilateral debt. The country seeks to continue talks after engaging with Eurobond holders in October 2023.
Restructuring negotiations last year was a “very difficult, painful process,” but Ghana has “built pretty good momentum”, Mr. Ofori-Atta told Reuters.
The IMF board is scheduled to convene on Friday, January 19, 2024, to decide on a $600 million disbursement as part of Ghana’s bailout program. Approval from the IMF would open the door for funding from other multilateral lenders.
Additionally, the World Bank is expected to make a decision on providing $550 million in funding on January 25, 2024, according to Finance Minister Ken Ofori-Atta.
Ghana is actively engaged in restructuring its debts under the Common Framework, a G20-established process designed during the COVID-19 pandemic to address debt challenges.
The country, facing a default in December 2022, is working to restructure around $20 billion of its external debt, which stood at approximately $30 billion at the end of 2022.