Ghana kickstarts debt restructuring negotiations with Paris Club members, Eurobond creditors

Finance Chief Ken Ofori-Atta, is currently engaging in negotiations with Eurobond creditors to seek debt relief for Ghana.

The negotiations aim to restructure an outstanding $13 billion Eurobond debt. In addition to these negotiations, Ghana is also in talks with bilateral creditors, including China and the Paris Club members, in an effort to restructure a total of $5.4 billion in debt.

If these negotiations are successful and result in favorable terms, it may lead to the International Monetary Fund (IMF) approving the release of the second tranche of financial support, which amounts to $600 million out of the total US$3 billion support.

Ghana’s goal is to secure a total of $10.5 billion in debt service relief between 2023 and 2026. If successful, this would allow the country to restructure approximately two-thirds of its US$30 billion external debt.

According to Mr Ofori-Atta, Ghana has been working diligently to meet all the requirements set by the IMF, asserting that the government has implemented measures like the Domestic Debt Exchange Programme, which he described as a difficult and sacrificial process but has demonstrated the commitment to fulfilling the criteria set by the IMF.

The negotiations and restructuring efforts are part of the G20’s Common Framework and are vital for Ghana’s financial stability and economic recovery. The government aims to conclude all debt restructuring negotiations by the end of 2023.

Source: Norvanreports