On December 20, 2022, former President John Dramani Mahama declared Ghana as bankrupt.

His statement came after the government announced its inability to fulfill certain categories of its external debt repayments as per the agreed terms.

Former President John Dramani Mahama responded to the government's announcement regarding its inability to fulfill certain categories of its external debt repayments.

In a statement dated Monday, December 19, the Ministry of Finance announced the suspension of all debt service payments under specific categories of the country's external debt component.

The government stated that this move is an interim emergency measure pending further agreements with the relevant creditors, while some analysts have described it as Ghana effectively defaulting on its external debt.

Former President Mahama's response was conveyed through a tweet posted on his official handle, consisting of just four words, “Tragic! Ghana officially bankrupt.”

What else the Finance Ministry statement said:

GhanaWeb Business was able to obtain a copy of the Ministry's announcement, which stated that the decision is subject to an orderly restructuring of the relevant debt obligations.

It clarified that payments on Ghana's commercial term loans, Eurobonds, and a sizable amount of its bilateral debt will all be suspended.

“This suspension will not include the payments of our multilateral debt, new debts (whether multilateral or otherwise) contracted after 19th December 2022 or debts related to certain short-term trade facilities,” the statement noted.

“We are also evaluating certain specific debts related to projects with the highest socio-economic impact for Ghana which may have to be excluded. This suspension is an interim emergency measure pending future agreements with all relevant creditors,” it added.

However, the Finance Ministry emphasized that the government is committed to engaging with its external creditors to conduct a transparent, equitable, and comprehensive debt restructuring process in accordance with international standards.

Additionally, it stated that the Ministry of Finance will host an investor presentation at a date to be announced in the near future.