By the end of 2023, the Ghanaian government, the Official Creditor Committee, and the Paris Club are expected to reach a consensus on an external debt restructuring plan, according to predictions made by global rating agency Fitch.

However, Fitch believes that by mid-year [2024], the government and private creditors will have reached a comparable debt swap agreement.

“We expect the OCC and authorities to agree on the debt treatment parameters by end-2023, before an agreement with private creditors on comparable terms is expected for mid-2024, paving the way for Ghana moving out of default,” Fitch pointed out in its comprehensive analysis of Frontier Markets.

Fitch also noted that these agreements with external creditors will be instrumental in helping Ghana exit its default status and taking steps to tackle its unsustainable debt burden.

A recent example of such a resolution is Zambia's agreement with its external creditors on a debt restructuring plan. Currently, Ghana is in the process of obtaining approval from the IMF's Executive Board for the second portion of a $3 billion bailout package, including $600 million.

This extended credit facility aims to restore macroeconomic stability over a three-year period.