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Ghana secures final MoU, saves $2.86bn in debt relief

Source The Ghana Report

The Government of Ghana has signed a Memorandum of Understanding (MoU) with its Official Creditors Committee (OCC), formalizing a crucial debt restructuring agreement aimed at restoring long-term financial stability.

Co-chaired by China and France, the agreement was announced in a statement by the Ministry of Finance on January 29, 2025.

This marks a major milestone in Ghana’s economic recovery efforts, following its decision in December 2022 to suspend parts of its external debt servicing due to a severe financial crisis.

At the time, inflation had soared to 54%, and foreign reserves had dwindled to less than two months’ worth of imports.

In response, the country launched a comprehensive debt restructuring plan, including the successful Domestic Debt Exchange Programme (DDEP) in 2023.

On January 12, 2024, Ghana reached a preliminary agreement with its Official Creditors under the G20 Common Framework for Debt Treatments, surpassing the Debt Service Suspension Initiative (DSSI).

However, it took another year to finalize and formalize the terms through the MoU.

“With the MoU now signed, the agreed terms will be implemented through bilateral agreements with each OCC member,” the Finance Ministry stated.

According to a December 2024 International Monetary Fund (IMF) report, Ghana is set to receive approximately $2.86 billion in debt service relief.

Of this amount, about $657 million is expected in 2025, providing critical fiscal space to support economic recovery efforts.

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