Ghana receives final MoU on external debt restructuring from Official Creditors

Information reaching norvanreports indicate that Ghana’s bilateral creditors have forwarded a final Memorandum of Understanding (MoU) on the country’s debt restructuring to the government.

Reports indicate that the final MoU was sent to Government on May 23, 2024, through the Official Creditor Committee.

All the 22 member countries of the Official Creditor Committee have all at the individual level agreed to the proposed terms on the restructuring of the debt owed by Ghana.

Government is expected to go through the MoU and sign the agreement with the creditors.

The agreement could however delay if government raises objections with some of the provisions.

The conclusion of the MoU by the Official Creditors could go a long way to aid the IMF board in passing Ghana’s review under the programme. This will result in the disbursement of some $360 million to the country by June ending 2024.

The Director of the African Department of the IMF, Abebe Aemro Selassie in April 2024, revealed that it has secured the needed financing assurance from bilateral creditors that will help to conclude the second review for Ghana.

Ghana in January 2024, secured “an agreement in principle” with the bilateral creditors under the G20 Common Framework debt treatment.

This helped the country in completing the first review under the IMF programme.

Ghana received $600 million in addition to some $300 million from the World Bank under the Development Policy Operation Financing.

This paved the way for the government to move on and work out the MoU between Ghana and its Official Creditor Committee on the terms for restructuring a $5 billion debt.

Finance Minister, Dr Mohammed Amin Adam in April in Washington DC on the sidelines of the IMF Spring Meetings revealed that the bilateral creditors through the Official Creditor Committee have shared the draft document on Ghana’s debt restructuring with members for consideration.

“The Official Creditor Committee has shared the draft document with their members and as soon as they share the document with us and we are okay with that, then we have an agreement,” he remarked.

Source: Norvanreports