Ghana has entered into a debt restructuring deal with Belgium to help strengthen the country’s economic stability.

Finance Minister Dr. Cassiel Ato Forson revealed on Thursday, March 5, that he signed the agreement on behalf of the Ghanaian government, calling it a key milestone in the nation’s ongoing external debt restructuring efforts.

“A while ago, on behalf of the Government of Ghana, I signed a debt restructuring agreement with the Kingdom of Belgium,” he said.

The Minister explained that this agreement is part of a wider initiative by the government aimed at stabilising the economy following the severe fiscal challenges faced in 2022 and 2023.

Dr. Forson reflected on the difficult period the country endured during the crisis, which had compelled the previous administration to declare a debt default.

He added that Ghana is slowly recovering from the crisis and is beginning to show positive signs of economic improvement.

“Today, however, the story is changing. Ghana is recovering and witnessing a significant economic turnaround, while we also put in place stronger systems to ensure we do not return to that point again,” the Finance Minister stated.

Dr. Forson further revealed that the deal with Belgium marks the eighth agreement Ghana has successfully concluded with countries under the Official Creditor Committee (OCC) framework as part of its external debt restructuring programme.

The Finance Minister also acknowledged the Belgian government and its diplomatic team in Ghana for their steadfast support throughout the restructuring process.

“On behalf of the Government and people of Ghana, I expressed my sincere gratitude to the Government of Belgium and to H.E. Carole van Eyll, the Ambassador of Belgium to Ghana, for their support and continued partnership with Ghana,” he said.

France, Ghana’s bilateral creditor, on Friday, July 25, signed an €87.7 million debt relief agreement with the West African country under the Official Creditor Committee (OCC).

France becomes Ghana’s first bilateral creditor to do so after two years of negotiations. Finance Minister Dr Cassiel Ato Forson and Co-Chair of the OCC, Mr William Ross, signed on behalf of the governments of Ghana and France, respectively.

This agreement ensures a hundred percent debt service, as well as a reduction in interest and an extension on maturity.

The Finance Minister expressed immense gratitude to France for standing as a true friend. “It is often said that it is only in difficult times that you see your true friends, and we can say without mincing words that the French Republic came through for Ghana and Ghana is extremely grateful,” Dr Cassiel Ato Forson said.

“Today is a milestone – in the sense that it has taken us some years to get here, but it’s the most significant one that will pave the way for others to this side. Inflation that was once at 54.1 per cent has now come down to 13.7 per cent. We are seeing growth bound to about a five-year high. We are seeing particularly reserves, the external position improving to about four months of import cover, and the primary surplus is at 1.1 per cent of Gross Domestic Product (GDP),” he added.

The sector minister assured that the government of Ghana is “determined to hold the line and sustain the progress we have made year to date, and we believe that in the coming days, Ghana will be able to see investment after the stability.”

Deputy Minister for Finance, Thomas Nyarko Ampem, asserted that the recent agreement is “telling a good story that Ghana is on track.”

On his part, Mr William Ross noted that the economic recovery being made by the government of Ghana is nothing short of impressive and compared the country’s economic performance to other countries such as Zambia.

“We have decided to reduce by 100 per cent as debt service, reduce interest and increase the maturity to give you space for investment, to also negotiate with other creditors and create a real partnership for other stakeholders to contribute to.

“If you look at what we have done for Ghana, it is shorter than what we did for Zambia, but we have continued to improve in the case of Ethiopia… you have been very impressive because you have many people and institutions to engage with,” Mr Ross said.

French Ambassador to Ghana, Mr Jules Armand Aniambossou, highlighted the many initiatives the government has put in place to rectify the many economic challenges it was saddled with. He noted that France holds in high esteem its historical relationship with the West African country. He said Ghana will continue to receive support from France to aid its economic recovery.

“When I came to this country more than two years ago, the country was facing some difficulties. But when your friend or your family is facing difficulties, you have to show that you will not just say, I am sorry, but to take some key actions.

“That is why the French government at the very high level, decided to do. Because we are here today due to the political volunteers from both sides. France decided not to let down Ghana because of our historical relationship and the key role Ghana is playing in our region [Africa],” he stated.

Last year, the government of Ghana reached an agreement on a Memorandum of Understanding (MoU) with its Official Creditor Committee in its debt restructuring efforts.

The OCC, co-chaired by France and China, was instrumental in reaching a debt treatment plan in January 2024.

This paved the way for the International Monetary Fund (IMF) Executive Board to approve the second review of the Fund-supported Post-COVID-19 programme for economic growth (PC-PEG).

The agreement has prevented the government of Ghana from securing more than $250 million in external financing for 2025, and this includes commercial loans, as part of a borrowing ceiling agreed upon.

This served as a structural benchmark to ensure compliance with fiscal discipline as part of the country’s IMF programme.

While presenting the 2025 mid-year budget review on July 24, Finance Minister Dr Cassiel Ato Forson noted that the government’s commitment to fiscal discipline, prudent debt management, and exchange rate appreciation has resulted in significant improvement in Ghana’s debt profile.

He revealed that the public debt reduced from GH¢726.7 billion as of the end of December 2024 to GH¢613 billion as of the end of June 2025. Ghana’s public debt reduced by GH¢113.7 billion in six months.

The sector minister noted that “for the first time in Ghana’s history, there is a negative 15.6% rate of debt accumulation.”

Ghana’s public debt-to-GDP ratio as of the end of June 2025 was 43.8%, down from 61.8% at the end of 2024. Ghana’s public debt as a percent of GDP reduced by 18% in six months. The country’s foreign debt, as a percentage of total public debt, declined from 57.4% as of the end of December 2024 to 49% by the end of June 2025.

“This has significantly improved Ghana’s debt sustainability,” the Finance Minister said while speaking on the floor of the House.

Touching on Ghana’s programme with the International Monetary Fund (IMF), the Finance Minister noted that Ghana remains on track with the implementation of the Programme. He revealed that the government’s commitment to fiscal discipline, prudent debt management and exchange rates has paved the way for a 5th review scheduled for September.

“The 5th Review, which is scheduled for September 2025, will be based on end-June 2025 data. Preliminary data shows that Ghana is on course to achieving most of the targets for the 5th Review. Mr. Speaker, our commitment to fiscal discipline, prudent debt management, and exchange rate appreciation has resulted in significant improvement in Ghana’s debt profile,” he added.

On commercial debt restructuring, the Finance Minister stated that the Ministry has made two debt service payments of about US$700 million to Euro bondholders.

Dr Forson disclosed that beginning in August, the Ministry of Finance will commence the building of cash buffers to support the repayment of Ghana’s domestic debt service obligations relating to the Domestic Debt Exchange Programme bonds, which will fall due in 2027 and 2028.