Ghana's official creditors are scheduled to convene on Monday, January 8, to deliberate on the restructuring of approximately $5.4 billion in loans to the country, according to Reuters.

This meeting holds significant importance for Ghana's ability to secure its next tranche of funding from the International Monetary Fund (IMF).

The Official Creditor Committee (OCC), co-chaired by the governments of the People's Republic of China and France, will be central to these discussions. Collectively, these two countries, among other bilateral lenders, account for about 25% of Ghana's $20 billion external debt slated for restructuring.

The Reuters report suggests that the meeting will primarily focus on reaching a consensus regarding a 'cut-off date.' This date is pivotal in determining when new loans from bilateral creditors will no longer be subject to restructuring.

The definition of this date has become a key challenge in Ghana's debt restructuring efforts.

The report indicates that the external creditors are divided on the exact cut-off date. One group advocates for December 31, 2022, as the cut-off date, citing Ghana's default earlier in that month.

Conversely, another group pushes for March 24, 2020, the date when the Group of 20 introduced the debt service suspension initiative (DSSI) to assist the world's poorest countries during the COVID-19 crisis.

The divergence of opinions on the cut-off date underscores the complexities involved in Ghana's debt rework and highlights the challenges in reaching a unified approach among the country's official creditors.

The outcome of this meeting will not only impact Ghana's debt restructuring process but will also have broader implications for its financial standing and international support from institutions like the IMF.

“Ghana is still about cut-off date, but creditors haven’t agreed yet,” a source from Reuters said. “If the cut-off date is agreed upon, that means an agreement on debt restructuring is close.”

In preparation for the OCC meeting on January 8, the Paris Club, consisting of major creditor nations (excluding China), will convene on Friday, according to two sources.