The Ministry of Finance has affirmed that ongoing negotiations regarding debt restructuring with creditors have not culminated in failure.

Through a tweet, the ministry clarified that an interim agreement has been reached between Ghana and bondholders, but adjustments are necessary to align with IMF debt sustainability targets.

“Ghana and Bondholders reached an interim deal, which must still be tweaked to meet IMF debt sustainability targets,” it stated.

The ministry emphasized that this phase does not signify failure but is rather a step in an ongoing process towards an agreement consistent with debt thresholds under the Debt Sustainability Analysis (DSA).

According to the ministry, substantial progress has been made in the debt restructuring negotiations. “No, this is not a failure but part of an ongoing process to arrive at an agreement consistent with debt thresholds under the DSA. We have made significant progress on the debt restructuring negotiations and the Government of Ghana thanks bondholders for their support in this process.”

The ministry iterated its commitment to continuing negotiations to finalize terms consistent with IMF debt sustainability targets.

Ghana’s objective is to reduce its external debt repayments and interest costs by US$10.5 billion from 2023 to 2026. An agreement in principle was reached in January to restructure US$5.4 billion of loans with official creditors. However, confirmation from official creditors regarding the comparability of the bondholder deal is awaited.

Dr. Mohammed Amin Adam, the Finance Minister, at the joint press conference on the completion of the second review of the IMF programme, stressed the government’s determination to achieve an agreement acceptable to all parties while adhering to the sustainability targets outlined in its IMF-supported economic program.

Over the past two months, the government has adopted a more assertive approach in negotiations with commercial creditors and Eurobond holders. Despite expressing confidence in reaching a deal, the government reiterated the importance of staying within the parameters of the IMF-supported program.

The ministry also emphasized the significance of maintaining the sustainability targets of the economic program. Formal discussions have been ongoing since March 16 with two groups holding Ghana’s international bonds, comprising an “international” group of western asset managers and hedge funds, as well as a group including regional African banks.