Ghana has reached a significant breakthrough in its debt restructuring efforts, with all 25 participating creditor countries signing a Memorandum of Understanding (MoU), marking a crucial step toward the nation's economic recovery.
Finance Minister Dr. Cassiel Ato Baah Forson announced the development during a media briefing, describing it as a key achievement in Ghana's journey toward debt sustainability under its International Monetary Fund (IMF) program.
"Today marks a significant milestone for the team, and we are pleased to inform all Ghanaians that the Memorandum of Understanding reached with the Official Creditors Committee last June has now been fully signed by all 25 participating creditors' countries," Dr. Forson stated.
The agreement comes as part of Ghana's comprehensive strategy to address its unsustainable debt levels. The restructuring aims to achieve several critical objectives, including reducing the debt-to-GDP ratio to below 55% by 2028 and lowering the debt service-to-revenue ratio to under 18% from 2028 onwards.
The process, initiated by former Finance Minister Mohamed Amin Adam in June 2024, has gained momentum under the current administration's leadership. Following President's directive, the Finance Ministry has worked intensively to bring this agreement to fruition.
Dr. Forson expressed gratitude to the Official Creditors Committee members, particularly highlighting the roles of China and France as co-chairs, for their support throughout the negotiation process. The agreement provides a framework for implementing financial terms through bilateral agreements with official creditors.
With 93% of the debt restructuring now complete, the government is turning its attention to the remaining 7%, which involves negotiations with commercial creditors. "We hope to make further progress with our commercial creditors in the coming weeks to reach a mutually beneficial solution for the debt treatment," he explained.
The Minister emphasized that these discussions will be guided by the most favored creditors' clause and principles of comparability of treatment, ensuring fair terms for all parties involved.
The government plans to focus on economic recovery through what Forson described as "an ambitious reform agenda." The administration aims to foster strong, resilient, and inclusive growth for all Ghanaians following this crucial debt restructuring milestone.
The agreement represents a significant step forward in meeting the IMF program's conditions and addressing Ghana's debt challenges. It provides a structured framework for the nation to work toward sustainable debt levels while maintaining its economic development goals.
"Let's celebrate it. That is most important," Dr. Forson remarked, emphasizing the positive implications of this development for Ghana's economic future
The successful completion of this phase of debt restructuring is expected to pave the way for increased economic stability and create a foundation for sustainable growth in Ghana, marking a new chapter in the country's financial management and economic development efforts.