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Ghana engages external creditors today

Source: REYMOND AWUSEI JOHNSON

Ghana is set to engage in a crucial meeting with its external creditors today, Monday, January 8, 2024, to conclude a plan for restructuring an estimated $5.4 billion in external debt.

Finance Minister, Ken Ofori-Atta

The meeting holds significant importance as it involves discussions on debt-related matters, economic reforms, and collaborative strategies for sustainable financial management

The Official Creditor Committee (OCC), co-chaired by the governments of China and France, holds a significant portion of Ghana’s $20 billion external debt earmarked for restructuring, while the government asserts ongoing negotiations, there remains an unresolved matter regarding the cut-off date for including external debt in the restructuring process between the government and the Official Creditors Committee.

As of October 2023, the Ministry of Finance urged bilateral creditors to swiftly reach an agreement on debt relief terms to facilitate Ghana’s access to the second tranche of the $3 billion International Monetary Fund (IMF) bailout package.

The initial $600 million was received from the IMF in May 2023, marking the first tranche of the package. However, the disbursement of the remaining funds hinges on the outcome of Ghana’s discussions with its bilateral creditors.

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