Pune Media

Ghana Strikes US$2.86 Billion Debt Relief Deal with International Creditors

Dr Cassiel Ato Baah Forson

Ghana’s government has finalized a critical agreement with global creditors, securing a landmark $2.86 billion debt service relief package to bolster its economic recovery efforts.

Finance Minister Cassiel Ato Forson announced Wednesday that the Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC)—co-chaired by China and France and comprising 25 member nations—formalizes terms first negotiated in June 2023. The deal marks a pivotal step in Ghana’s quest to stabilize its finances amid a prolonged fiscal crisis.

“This agreement is a cornerstone for restoring Ghana’s long-term debt sustainability,” Forson said during a press briefing, emphasizing the relief package’s role in freeing up fiscal resources. The funds are expected to support ongoing reforms backed by a $3 billion International Monetary Fund (IMF) bailout program, aimed at curbing inflation, stabilizing the local currency, and revitalizing growth. Forson added that Ghana would now prioritize finalizing bilateral agreements with individual creditor nations to cement the terms.

The debt restructuring process, initiated in December 2022 as a precondition for IMF assistance, comes after Ghana faced mounting pressure from a dual fiscal and balance-of-payments crisis. Soaring public debt, compounded by global economic shocks and domestic revenue shortfalls, had pushed the West African nation to seek urgent relief. The IMF program, approved in May 2023, hinges on stringent reforms, including expenditure cuts and enhanced revenue mobilization.

Analysts suggest the OCC deal underscores the growing coordination among major creditors, particularly China, which holds a significant portion of Africa’s bilateral debt. While the relief offers Ghana breathing room, experts caution that sustained recovery will require transparent governance and rigorous implementation of reforms. “Debt treatment is a lifeline, not a cure-all,” said Kwame Asante, an Accra-based economist. “The real test lies in how Ghana leverages this respite to build resilient institutions and attract productive investments.”

The agreement also spotlights broader challenges faced by debt-distressed low- and middle-income nations, many of which have struggled with post-pandemic recovery amid rising borrowing costs. For Ghana, the immediate focus turns to negotiations with private bondholders, who hold nearly $13 billion of the country’s external debt. Success there could further ease investor concerns and pave the way for renewed access to international capital markets—a crucial milestone for a nation eager to turn the page on its worst economic downturn in decades.

Send your news stories to newsghana101@gmail.com
Follow News Ghana on Google News



Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.

Aggregated From –

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More