The government has reached a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC) concerning the debt resolution terms agreed upon in January 2024.
According to the Ministry of Finance, the OCC, co-chaired by China and France, was key in achieving this milestone.
The Ministry explained that the MoU formalizes the preliminary agreement from January, representing a crucial step towards reestablishing Ghana’s long-term fiscal stability.
This agreement also signifies that completing the Official Creditor Committee’s terms will allow for the International Monetary Fund’s (IMF) endorsement, unlocking the next IMF funding installment of US$360 million.
The IMF Board’s approval is expected to lead to additional financial support from development partners, notably the World Bank. Furthermore, this accord is anticipated to strengthen ongoing discussions with private creditors, as Ghana seeks to secure a similar settlement soon.
The Ministry, in a statement said, “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.”
“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. Ghana also reiterates its firm commitment to remain in arrears with its external commercial creditors until agreements compatible with the comparability of treatment principle are reached,” it added.
The Ministry called on the official creditors to speed up their internal processes for finalizing these bilateral agreements.
Dr. Mohammed Amin Adam, the Finance Minister, conveyed the Ministry of Finance’s sincere gratitude to all OCC members, particularly the co-chairs, China and France, for their unwavering commitment to helping Ghana resolve its financial difficulties.
“The Ministry of Finance on behalf of the Republic of Ghana extends our gratitude to all members of the OCC. particularly the committee’s co-chairs. China and France, for their unwavering commitment to assisting our country in resolving its debt issues,” it added.
He noted that this landmark agreement marks a major milestone in Ghana’s debt restructuring efforts and is set to enhance the country’s reform initiatives, supported by the strong backing of its development partners.