Ghana secures agreement with Official Creditor Committee

The Government of Ghana and the Official Creditor Committee (OCC) have successfully concluded a Memorandum of Understanding (MoU) on the debt treatment that was agreed upon in January 2024.

Ghana’s OCC, which was co-chaired by France and China, was essential to this accomplishment.

In order to restore Ghana’s long-term debt sustainability, the MoU formalises the agreement in principle struck with Official Creditors in January.

During the programme time supported by the Fund, the agreement’s financial terms stay unaltered and offer substantial relief from debt service. This will make it possible to allocate funds for important projects like infrastructure, healthcare, and education.

The next tranche of US$360 million in IMF finance is scheduled to be disbursed after the OCC agreement is formalised and approved by the IMF Executive Board for the second review of the Fund-supported Post Covid-19 Programme for Economic Growth (PC-PEG).

The World Bank and other development partners should provide more funding as a result of the IMF Board’s approval.

The deal will also fortify current negotiations with private creditors, with whom Ghana is still dedicated to reaching a similar settlement as quickly as feasible.

Subsequently, the MoU will be signed by each official creditor in accordance with its own internal protocols. Following signature, bilateral agreements with each OCC member will be used to carry out the agreed provisions.

“We call upon our official creditors to fast-track their internal processes towards the signing of the bilateral agreements. 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 comparability of treatment principle.”

“Ghana also reiterates its firm commitment to remain in arrears with its external commercial creditors until agreements compatible with the comparability of treatment principle are reached,” Minister for Finance, Dr. Mohammed Amin Adam said in a statement on June 12, 2024.

“The Ministry of Finance on behalf of the Republic of Ghana extends our gratitude to all members of the OCC, particularly the committee’s co-chairs, China and France, for their unwavering commitment to assisting our country in resolving its debt issues.

“This landmark agreement marks an extraordinary milestone in Ghana’s debt restructuring journey and will further strengthen our ambitious reform agenda with the strong support of our development partners,” the statement added.