Ghana Secures $2.8 Billion Debt Relief Agreement With Creditors

Ghana has successfully signed a Memorandum of Understanding (MoU) with all members of its Official Creditor Committee, formalizing a debt restructuring agreement that provides approximately $2.86 billion in debt service relief. This milestone follows Ghana's default on most external borrowing in December 2022 amid an economic crisis characterized by soaring inflation and dwindling reserves. The MoU, co-chaired by China and France, is pivotal for Ghana as it seeks to restore long-term debt sustainability and redirect financial resources towards economic recovery under its $3 billion program with the International Monetary Fund. However, negotiations with about 60 international banks regarding an additional $2.7 billion in commercial loans are still ongoing. The government remains committed to engaging with commercial creditors to secure a final agreement that meets its debt relief needs. The successful execution of this restructuring plan is critical for Ghana's fiscal stability and future recovery efforts.