Ghana has received a draft term sheet on debt relief from its official creditors that is sufficient for the International Monetary Fund to disburse $600 million to the West African nation, Finance Minister, Ken Ofori-Atta said.
The term sheet from the Paris Club Group of creditors and new ones including China comes after months of negotiations to restructure as much as $5.4 billion of bilateral debt. The IMF board is expected to meet in a week.
“We are reviewing the draft term sheet,” Ofori-Atta said in an interview in the capital, Accra, declining to provide details in the draft accord.
“We need to scrutinize every clause but in terms of the broad framework, all parties are in agreement so it’s kind of a clearance to the fund. I’m hoping by tomorrow we would have finished so that whatever needs to be done will be sent to the fund,” he said.
Ghana started restructuring most of its public debt in December 2022 to qualify for a $3 billion extended credit facility program with the IMF. The country received an upfront disbursement of $600 million when it agreed to the program in May. Further releases, however, depend on meeting debt-rework and other performance targets.
Public debt — excluding loans to state-owned enterprises — eased to 66.4% of gross domestic product at the end of September, helped by the completion of a domestic debt reorganization. Those investors mainly suffered interest-rate cuts when they swapped about 126 billion cedis ($10.5 billion) of local debt last year.
A memorandum of understanding with the bilateral lenders could also unlock $550 million of additional funding from the World Bank by the end of February, Ofori-Atta said last week.
Latest Stories
-
East Legon crash: Police pursue TikTokers for ‘false claims’ about Salifu Amoako’s son’s location
23 mins -
Severe food shortage force some SHSs to serve repetitive meals
32 mins -
Don Julio 1942 launched by Guinness Ghana Breweries with an enchanting Halloween Ball celebration
34 mins -
3 Central Region MCEs intensify cholera control efforts after 5 deaths
40 mins -
Bawumia’s 12 ‘Bold Steps’ to expand educational opportunities for all
42 mins -
Mahama criticises NPP for accumulating energy debt to pass on to next NDC gov’t
42 mins -
Agromonti empowers Techiman farmers with sustainable agriculture training in CSR event
48 mins -
Ghanaians deserve certificates for enduring hardship under NPP – Mahama
48 mins -
AG’s office needs 1,500 public attorneys for proper discharge of functions – Godfred Dame
49 mins -
Court sentences man to life imprisonment for murdering girlfriend; daughter
1 hour -
Bawumia’s $80 bn value claim for Spotify, false – Dubawa
1 hour -
GBA President calls for transparent and fair December election
2 hours -
November 8 not a public holiday – Interior Ministry
2 hours -
Policies the Church can promote to ensure every birth by a congregant is wanted, not unintended
2 hours -
Next NPP government to build new AG offices in all regions – Godfred Dame
2 hours