Ghana Nearing Agreement on Debt Restructuring with Official Creditors

Ghana and its official creditors have resolved key issues regarding a debt overhaul and are set to sign a preliminary memorandum of understanding, a vital step for accessing additional funding from the International Monetary Fund.

The memorandum formalizes a tentative agreement made in January with government creditors, such as China and France, to restructure $5.4 billion of debt.

Securing the MoU will clear the path for the IMF’s board to convene and authorize a payment of $360 million as part of Ghana’s $3 billion rescue package, anticipated later this month.

Ghana’s default on a significant portion of its foreign debt in December 2022 due to steep servicing expenses complicates the government’s endeavors to obtain external financing and navigate its way out of a severe economic downturn.