The Government has announced a significant milestone in its debt restructuring journey, having reached an agreement on a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC).
This is concerning the debt treatment agreed upon in January 2024. The OCC, co-chaired by China and France, played pivotal roles in achieving this milestone.
The MoU formalises the agreement in principle reached with Official Creditors in January and marks a crucial 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," stated the Finance Minister, Dr Mohammed Amin Adam.
This relief will allow financial resources to be redirected towards critical areas such as infrastructure, healthcare, and education.
The formalisation of the OCC agreement is expected to pave the way for the approval by the IMF Executive Board of 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.
Additionally, the IMF Board’s approval is anticipated to trigger more financial assistance from development partners, particularly the World Bank.
The agreement will also bolster ongoing discussions with private creditors, with whom Ghana is committed to finding a comparable agreement as early 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," urged Dr Adam.
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.
The country reiterates its firm commitment to remain in arrears with its external commercial creditors until agreements compatible with the comparability of treatment principle are reached.
Dr Adam expressed his gratitude to the OCC members, particularly 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 historic agreement is expected to provide a strong foundation for Ghana's economic recovery and sustainable development, reinforcing the nation's commitment to transforming its economy beyond aid.
Latest Stories
-
CAF President blasts Ghana over Baba Yara stadium ban
1 min -
GUTA calls for de-politicization of fight against galamsey
2 mins -
Police outlines guidelines for NDC’s nationwide demonstration against EC
17 mins -
Demystifying the claims of rip-offs and arbitrary charges in Ghana’s port sector—from the shipping lines perspective
28 mins -
EducationUSA: Ghanaian students in US benefit from $9 million Investment
42 mins -
Elections not about insults; be decent in your speech – Bawumia to Mahama
47 mins -
Reverse osmosis the most reliable way to filter water – Association of Packaged Water Producers
1 hour -
UG SRC Presidential Race: Court ruling has taught me a lot about life – Guru
1 hour -
Agro-tourism firm announces experience for Ghanaian farmers and agribusinesses to tour Saskatchewan
1 hour -
Peace Council implements measures to ensure peaceful 2024 elections
1 hour -
Staff of banks involved in fraud increases by 46% in 2023; BoG expresses worry
1 hour -
NDC calls for public support for upcoming protest – W/R NDC Secretary
2 hours -
2024/25 GPL: Vision FC secure 2-0 maiden GPL win against Accra Lions
2 hours -
I didn’t pull a gun at DRIP commissioning – Gomoa West MP refutes allegations
2 hours -
Galamsey: Current effort doesn’t match the scale of crisis – Kenneth Ashigbey
2 hours