Despite the fact that only poor countries are qualified for the G20 Common Framework program, Ghana is planning to request a debt relief through it.

The nation has reportedly asked for assurances that the negotiations can move quickly before continuing.

According to the report, Ghana contacted the Paris Club of Creditor Nations in December 2022 to request guarantees that the Common Framework process, established by the Group of 20 Leading Economies in 2020 in response to COVID-19, might be sped up.

According to a source who spoke to Reuters under the condition of anonymity, if the assurances are positive, the government would quickly sign up the Common Framework.

While declining to provide any information, a Paris Club representative told Reuters that the organization had received a letter from the government of Ghana.

It is difficult to imagine Ghana doing anything other than agreeing to the Common Framework because they have given themselves no other options, according to a source with knowledge of Ghana's debt restructuring.

According to Reuters, a third person who is acquainted with the IMF's thinking said Ghana participating in the Common Framework program was under consideration and would likely be the best option for the Paris Club.

Only less wealthy countries are permitted to apply for a Common Framework initiative. As a result, a formal creditors committee was formed, and the World Bank and the International Monetary Fund supported the negotiations.

However, a nation seeking to restructure its debt might also do so by engaging in one-on-one discussions with each creditor.

The Common Framework, designed to allow for speedy debt reworks, has been widely criticised for its glacial progress.

Chad, Ethiopia and Zambia signed up in early 2021. While Chad secured a deal with creditors in November, Zambia is still locked in talks. Ethiopia’s progress was held up by civil war.

Ghana’s public debt hits ¢467.4bn in September 2022

Ghana’s public debt stock hit ¢467.4 billion ($47.7 billion) in September 2022, of which about $4 billion was bilateral. $1.9 billion was held by Paris Club countries and $1.7 billion by China.

President Akufo-Addo in July 2022 directed the Finance Minister, Ken Ofori-Atta, to begin formal engagements with the IMF for a Fund-support.

A statement signed by the Information Minister, Kojo Oppong Nkrumah, and dated July 1, 2022 indicated that there had already been a conversation between the IMF boss, Kristalina Georgieva and President Akufo-Addo, conveying the government’s decision to engage the Fund.

The IMF-support programme will inject $3 billion into the country’s economy as balance of payment support.

Ghana must restructure its debt to get the final approval to access the IMF funds.

In December 2022, Finance Minister, Ken Ofori-Atta launched a domestic debt exchange and later said it would default on nearly all of its $28.4 billion of external debts.