Ghana secures landmark debt relief agreement with France

Ghana has taken a major step forward in its quest for economic recovery after signing a landmark bilateral agreement with France to formalize debt relief under the country’s ongoing external debt restructuring programme.

The agreement, signed on Friday, July 25, positions France as the first Paris Club member to formally endorse debt forgiveness for Ghana—setting a precedent for other creditor nations to follow. The deal forms part of efforts to resolve the West African nation’s mounting debt crisis, which was worsened by the COVID-19 pandemic and its aftermath.

At the signing ceremony, Finance Minister Dr. Cassiel Ato Forson hailed France’s commitment, describing it as a strong vote of confidence in Ghana’s recovery plan. He called on other members of the Paris Club to emulate France’s leadership by honouring the indicative terms earlier agreed upon by the Official Creditor Committee (OCC).

Dr. Forson formally announced the breakthrough during his presentation of the 2025 Mid-Year Budget Review in Parliament. He indicated that the agreement followed Parliament’s ratification of the OCC’s proposed debt restructuring parameters.

“This deal demonstrates our determination to follow through on our pledge to restore debt sustainability and financial stability,” Dr. Forson told Parliament.

He reaffirmed government’s resolve to complete its bilateral and commercial debt restructuring under the G20 Common Framework, which he described as essential to rebuilding economic resilience and securing long-term growth.

The debt relief from France is a cornerstone of Ghana’s broader economic reform agenda, which also includes fiscal consolidation, improved revenue mobilisation, and targeted investments in critical sectors.

Officials believe the deal will help restore investor confidence, ease debt-servicing pressures, and create the fiscal space needed to invest in social and infrastructural development.

The government is hopeful that France’s leadership will accelerate engagement with other creditors, ensuring a comprehensive and coordinated resolution to Ghana’s debt overhang.