Ghana Reaches Debt Comparability Treatment Agreement with Creditor Committee

The Government of Ghana has announced that it has reached agreement with its Official Creditors under the G20 Common Framework on a comprehensive debt treatment. This significant achievement marks a crucial step towards restoring Ghana’s long-term debt sustainability and economic recovery.

Key Points :

Debt Treatment Agreement: Ghana and its Official Creditors have agreed on a debt treatment plan consistent with the IMF-supported program.

G20 Common Framework: The agreement is under the G20 Common Framework for Debt Treatments, demonstrating international cooperation in addressing debt issues.

Debt Sustainability: The agreement aims to restore Ghana’s long-term debt. sustainability and macroeconomic stability.

IMF Support: The agreement clears the path for IMF Executive Board consideration of the first review of Ghana’s three-year Extended Credit Facility Arrangement.

Financial Support: The agreement is expected to unlock financing from Ghana’s development partners, including the World Bank’s $300 million Development Policy Operation (DPO) financing.

Government Response: The Government of Ghana has expressed its gratitude to its Official Creditors for their support and cooperation in reaching this agreement. The Ministry of Finance has reiterated its commitment to restoring Ghana’s long-term debt sustainability and strengthening macroeconomic stability.

IMF Response: IMF Managing Director Kristalina Georgieva has welcomed the agreement, acknowledging the importance of international cooperation in addressing debt issues. She has also commended the Ghanaian authorities’ strong reform program, which aims to restore macroeconomic stability and debt sustainability.

Impact :

This agreement is expected to have a positive impact on Ghana’s economy, including:

Restored Debt Sustainability: The agreement will help restore Ghana’s long-term debt sustainability, reducing the risk of disorderly default.

Improved Creditworthiness: The agreement demonstrates Ghana’s commitment to debt restructuring, enhancing its creditworthiness and access to international capital markets.

Economic Growth: The debt relief and restructuring will enable the government to allocate more resources to development projects, supporting economic growth and job creation.

The agreement demonstrates the country’s commitment to restoring debt sustainability and macroeconomic stability, paving the way for economic recovery and growth.