Government is committed to concluding external debt restructuring-Akufo-Addo
President Nana Addo Dankwa Akufo-Addo has pledged his commitment to concluding external debt restructuring with the country’s external creditors.
The President pointed out that, having successfully paid the domestic bondholders the government is currently engaging Ghana’s external creditors to achieve a successful implementation of the extended credit facility with the IMF.
“We have also intensified our engagement with our external bondholders on the principles of transparency, fair treatment consistent with the IMF debt sustainability analysis, and good faith. We are focused and committed to accelerating the process.”
During the State of the Nation address on Tuesday, February 27, President Akufo-Addo disclosed that GH¢5.8 billion has been paid to the bondholders.
The government announced a domestic debt exchange programme in 2023 targeted at individual and pension bondholders as part of its revenue target to reach an agreement with the International Monetary Fund (IMF).
Background
The Finance Ministry in a statement on January 12, 2024, announced that it has reached an agreement with the Official Creditors Committee on the debt treatment under the G20 Common Framework.
This came after months of negotiations over the cut date for restructuring Ghana’s debts.
However, after that final round of meetings last week, all the members of the OCC agreed on December 2022 as the deadline for restructuring Ghana’s debts.
The Managing Director of the IMF, Kristalina Georgiva, in a statement, welcomed the debt treatment agreement.
According to her, “This agreement clears the path for IMF Executive Board consideration of the first review of Ghana’s three-year Extended Credit Facility Arrangement in the next few days”.
She added, “The Government of Ghana looks forward to further engaging with the Official Creditors to ensure prompt implementation of the agreed terms”.