The government has successfully finalized a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC) regarding the debt treatment outlined in January 2024.
Ghana’s OCC, co-chaired by China and France, played instrumental roles in this accomplishment.
The MoU formalizes the agreement in principle reached with Official Creditors earlier in January and represents a crucial step towards restoring Ghana’s long-term debt sustainability.
The financial terms of the agreement remain unchanged, offering substantial debt service relief throughout the Fund-supported program period. This will enable financial resources to be channeled towards vital areas such as infrastructure, healthcare, and education.
The formalization of the OCC agreement is anticipated to clear the path for the IMF Executive Board’s endorsement of the second review of the Fund-supported Post Covid-19 Programme for Economic Growth (PC-PEG). This approval will facilitate the release of the next tranche of IMF financing totaling US$360 million.
Furthermore, the approval from the IMF Board is expected to unlock additional financial support from development partners, notably the World Bank.
The agreement will also bolster ongoing negotiations with private creditors, as Ghana remains dedicated to reaching a comparable agreement with them at the earliest opportunity.
Each official creditor will now proceed with its internal procedures to sign the MoU. Upon signature, the agreed-upon terms will be implemented through bilateral agreements with each OCC member.
“We urge our official creditors to expedite their internal processes for the signing of bilateral agreements. Ghana remains committed to engaging in good faith with all commercial external creditors, aiming to finalize restructuring agreements that align with Ghana’s need for debt relief and the principle of comparability of treatment.”
“Ghana reaffirms its steadfast commitment to remain in arrears with its external commercial creditors until agreements consistent with the comparability of treatment principle are reached,” stated Minister for Finance, Dr. Mohammed Amin Adam, in a statement released by the Ministry.
“On behalf of the Republic of Ghana, the Ministry of Finance extends sincere appreciation to all members of the OCC, particularly the committee’s co-chairs, China and France, for their unwavering dedication to assisting our nation in resolving its debt challenges.”
“This landmark agreement signifies an exceptional achievement in Ghana’s debt restructuring journey and will further bolster our ambitious reform agenda with the robust support of our development partners,” concluded the statement.
my Radio G-Live 
