The Government of Ghana has reached an agreement on a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC) in its debt restructuring efforts.
This development pertains to the debt treatment plan agreed upon in January 2024. The OCC, co-chaired by China and France, was instrumental in reaching this milestone.
The MoU formalizes the agreement in principle established with Official Creditors in January, representing a critical step towards restoring Ghana’s long-term debt sustainability.
“The financial terms of the agreement remain unchanged, providing significant debt service relief during the Fund-supported program period,” the Finance Minister, Dr Mohammed Amin Adam, said.
This relief will enable the redirection of financial resources towards critical sectors such as infrastructure, healthcare, and education.
The formalization of the OCC agreement is expected to pave the way for the IMF Executive Board to approve the second review of the Fund-supported Post-COVID-19 Programme for Economic Growth (PC-PEG).
This approval will facilitate the disbursement of the next tranche of IMF financing, amounting to US$360 million.
Furthermore, the IMF Board’s approval is anticipated to trigger additional financial assistance from development partners, particularly the World Bank.
The agreement will also strengthen ongoing discussions with private creditors, with whom Ghana is committed to securing a comparable agreement as soon as possible.
“Each official creditor will now follow its internal procedures to sign the MoU. Once signed, the agreed terms will be implemented through bilateral agreements with each OCC member.
“We call upon our official creditors to fast-track their internal processes towards the signing of the bilateral agreements,” Dr Adam said.
Dr. Adam expressed his gratitude to the OCC members, especially the committee’s co-chairs, China and France, for their unwavering support.
“This landmark agreement marks an extraordinary milestone in Ghana’s debt restructuring journey and will further strengthen our ambitious reform agenda with the strong support of our development partners,” he noted.
This landmark agreement is anticipated to lay a solid foundation for Ghana’s economic recovery and sustainable development, reinforcing the nation’s commitment to transforming its economy beyond reliance on aid.