Ghana has made a major breakthrough in stabilizing its economy by securing a landmark agreement with international creditors. Notably, all 25 participating creditor countries signed a Memorandum of Understanding (MoU). Consequently, this agreement reinforces the government’s commitment to restoring fiscal balance and ensuring long-term debt sustainability under the International Monetary Fund (IMF) program.
Finance Minister Dr. Cassiel Ato Baah Forson announced the development during a media briefing. He emphasized its significance in Ghana’s economic recovery strategy. Moreover, he highlighted the positive impact this will have on the nation’s financial future.
“Today marks a significant milestone for the team. We are pleased to inform all Ghanaians that the Memorandum of Understanding reached with the Official Creditors Committee last June has now been fully signed by all 25 participating creditor countries,” Dr. Forson stated.
The MoU formalizes the agreement in principle that Ghana reached with the Official Creditors Committee (OCC) in January 2024. Importantly, China and France, as co-chairs of the OCC, played a key role in facilitating this agreement. In addition, the MoU establishes a framework for implementing financial terms through bilateral agreements with official creditors. This ensures Ghana follows its debt sustainability measures effectively.
Dr. Forson thanked the OCC members and acknowledged China and France for their crucial support during negotiations. Additionally, he assured that the financial terms of the agreement remain unchanged. As a result, this secures significant debt service relief during the IMF-supported program period.
With 93% of the debt restructuring complete, the government is now focused on the remaining 7%. This involves negotiations with commercial creditors. “We hope to make further progress with our commercial creditors in the coming weeks to reach a mutually beneficial solution for the debt treatment,” Dr. Forson explained. Furthermore, he reiterated the government’s commitment to engaging all stakeholders fairly.
The Minister stressed that these discussions will follow the most favored creditors’ clause and the principles of comparability of treatment. Therefore, this ensures fair terms for all parties involved.
Furthermore, the government is prioritizing economic recovery through what Dr. Forson called “an ambitious reform agenda.” Specifically, this strategy aims to foster strong, resilient, and inclusive growth for all Ghanaians after this critical debt restructuring milestone.
The successful restructuring will enable Ghana to re-enter global capital markets. Moreover, it will lay the foundation for long-term economic stability. Ultimately, the government remains committed to fiscal responsibility and strategic negotiations to ensure a sustainable financial future for the country.
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