Business News of Wednesday, 29 January 2025

Source: www.ghanaweb.com

Ghana in discussions with 60 international banks to restructure $2.7 billion in commercial loans

Minister of Finance, Dr. Cassiel Ato Forson Minister of Finance, Dr. Cassiel Ato Forson

The Government of Ghana is actively negotiating with 60 international banks to restructure $2.7 billion in commercial loans, according to a report by Bloomberg.

This move is part of a broader strategy to manage the country's debt and restore economic stability.

On January 29, 2025, the Ministry of Finance announced that Ghana had successfully signed a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC), marking a major milestone in the country’s efforts to resolve its ongoing debt challenges.

The MoU has been agreed upon by all participating creditor countries, signaling a collective commitment to supporting Ghana in its bid to restore long-term debt sustainability.

This agreement formalises the debt treatment plan previously negotiated with the official creditors, providing Ghana with crucial debt service relief during the period of its IMF-supported program.

The relief will enable the country to allocate more financial resources toward strengthening its economic recovery efforts.

With the MoU now signed, Ghana is set to implement the agreed terms through bilateral agreements with each of the participating creditor countries.

"Ghana continues to engage in good faith with all commercial external creditors, striving to finalize restructuring agreements that respect Ghana’s need for debt relief and the principle of comparability of treatment," the Ministry of Finance stated.

The government has already implemented a Domestic Debt Exchange Programme (DDEP), which is reported to have saved the country approximately $12 billion.

This program involved restructuring domestic bonds.

The government is now focusing on restructuring its external commercial debt, including the $2.7 billion in loans currently under negotiation.

MA

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