Ghana Anticipates Debt Agreement with Bilateral Creditors in May, Says Finance Minister

Ghana is gearing up to sign a crucial Memorandum of Understanding (MoU) with its official bilateral creditors in May 2024, as part of efforts to restructure its external debt amounting to approximately US$13 billion.

Finance Minister Dr. Mohammed Amin Adam revealed this development, stating that the draft agreement is expected to be shared with Ghana soon.

The anticipated MoU stems from Ghana’s agreement in principle with official creditors in January 2024, aligning with the IMF’s debt sustainability parameters.

According to Dr. Amin Adam, all necessary agreements have been reached, with the only remaining step being the finalization of the MoU draft, slated for May.

Dr. Amin Adam expressed optimism that the signing of the MoU will pave the way for Ghana to access the third tranche of US$360 million under its second review programme with the IMF.

This positive outlook was shared during a press briefing wrapping up Ghana’s engagements at the 2024 IMF/World Bank Group Spring Meetings in Washington, US.

While the IMF staff mission team clarified that the MoU signing is not a prerequisite for fund disbursement, Dr. Amin Adam emphasized the importance of reaching an agreement with official creditors.

He highlighted ongoing discussions and the imminent sharing of the draft MoU with Ghana, expressing confidence in securing the third tranche in June.

Ghana’s engagement in the Extended Credit Facility (ECF) programme, supported by a homegrown Post-COVID-19 Programme for Economic Growth (PC-PEG), aims to restore macroeconomic stability and debt sustainability.

The spring meetings provided a platform for Ghana to engage with creditors and development partners on economic stability and resilience efforts.

Among the significant developments announced during Ghana’s participation in the 2024 spring meetings is the procurement of one million modern meters through the World Bank’s Programme-for-Results initiative.

This initiative aims to enhance revenue collection amid power outages attributed to liquidity challenges in the energy sector, reflecting ongoing efforts to address critical issues facing the country’s economy.