Government Reaches Historic Debt Agreement with Official Creditors Committee

The government has successfully negotiated a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC) regarding the debt resolution terms established in January 2024.

The Ministry of Finance highlighted that the OCC, jointly led by China and France, played a crucial role in reaching this significant milestone.

The MoU solidifies the preliminary agreement with the official creditors from January 2024, marking a pivotal step towards reestablishing Ghana’s long-term fiscal stability.

It also indicates that finalizing the OCC’s terms will pave the way for the International Monetary Fund’s (IMF) endorsement, facilitating the release of a subsequent IMF funding installment of $360 million.

The IMF Board’s approval is expected to unlock additional financial support from development partners, notably the World Bank.

This agreement is also anticipated to enhance ongoing negotiations with private lenders, as Ghana aims to secure a similar settlement promptly.

In a statement, the Ministry of Finance said, “Each official creditor will now follow its internal procedures to sign the MoU. Once signed, the agreed terms will be implemented through bilateral agreements with each OCC member. We call upon our official creditors to fast-track their internal processes towards the signing of the bilateral agreements.”

“Ghana continues to engage in good faith with all commercial external creditors, striving to finalize restructuring agreements that respect Ghana’s need for debt relief and the comparability of treatment principle. Ghana also reiterates its firm commitment to remain in arrears with its external commercial creditors until agreements compatible with the comparability of treatment principle are reached,” it added.

Dr. Mohammed Amin Adam, the Finance Minister, expressed the Ministry of Finance’s deep appreciation to all OCC members, especially the co-chairs, China and France, for their steadfast dedication to aiding Ghana in addressing its financial challenges.

“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,” he added.

He remarked that this landmark accord is a significant achievement in Ghana’s journey of debt restructuring and is poised to amplify the country’s reform initiatives, bolstered by the robust backing of its development partners.