Ghana reaches debt relief deal with international creditors

The Government of Ghana has reached an agreement with its official creditors that provides much-needed debt relief, the Ministry of Finance has announced.

In a statement dated June 12, the Ministry said the Memorandum of Understanding (MoU) formalizes the debt treatment agreed with Official Creditors last January.

It involves significant debt service relief during the ongoing IMF support program, allowing financial resources to be redirected to priority areas like infrastructure, healthcare and education.

"The Ministry of Finance on behalf of the Republic of Ghana extends our gratitude to all members of the OCC, particularly the committee's co-chairs, China and France, for their unwavering commitment to assisting our country in resolving its debt issues," said Finance Minister Dr. Mohammed Amin Adam.

"This landmark agreement marks an extraordinary milestone in Ghana's debt restructuring journey and will further strengthen our ambitious reform agenda with the strong support of our development partners," he added.

The deal, according to the Minister of Finance, is a crucial step in restoring Ghana's long-term debt sustainability.

It paves the way for the IMF to approve the next tranche of its support program, releasing $360 million to Ghana.

Other development partners like the World Bank are expected to provide more funds.

The statement further noted that Ghana continues negotiations with private creditors to also reach a comparable agreement.

The Ministry called on official creditors to expedite signing bilateral agreements that will formally implement the MoU's agreed terms.