Ghana has officially secured $2.8 billion in debt relief after all 25 members of its Official Creditor Committee signed a Memorandum of Understanding (MoU), finalizing an agreement initially reached under the G20 Common Framework for Debt Treatment.The move provides significant financial relief, allowing the government to focus on implementing structural reforms under the country’s $3 billion International Monetary Fund (IMF) programme.

0

“The Government of the Republic of Ghana is pleased to announce that the Memorandum of Understanding (MoU) reached with its Official Creditor Committee (OCC) has been signed by all Participating Creditor Countries,” Finance Minister Dr. Cassiel Ato Forson stated in Accra on Wednesday, January 29, 2025.He emphasized that formalizing the agreement was a major milestone in Ghana’s debt restructuring efforts.

1

“The signing of the MoU formalizes the debt treatment agreed upon with Official Creditors and marks a crucial step towards Ghana restoring long-term debt sustainability. The agreement provides significant debt service relief during the Fund-supported programme period, allowing financial resources to be directed towards supporting and strengthening the economic recovery,” he added.

2

Despite this progress, discussions continue regarding the remaining 7% of the deal, involving negotiations with approximately 60 international financial institutions. Additionally, Ghana has yet to reach a resolution on a separate $2.7 billion debt agreement with commercial creditors.

3

“Ghana continues to engage in good faith with all commercial external creditors, striving to finalize restructuring agreements that respect Ghana’s need for debt relief and the comparability of treatment principle,” Dr. Forson said.With the signing of the MoU, Ghana is nearing the completion of its external debt restructuring process.

4

Officials see this as a critical step toward stabilizing the economy, addressing debt sustainability challenges, and rebuilding investor confidence.The government remains hopeful that ongoing discussions with commercial creditors will lead to a comprehensive debt restructuring plan, further strengthening Ghana’s path to long-term economic recovery.

5