Ghana, OCC to reach external debt swap agreement by end of 2023 – Fitch

Global ratings agency Fitch has predicted that the government of Ghana and the Official Creditor Committee along with the Paris Club will come to an agreement on an external debt restructuring programme by the end of 2023.

Fitch anticipates that the government will however reach an agreement with private creditors on comparable debt swap terms in the middle of next year [2024].

“We expect the OCC and authorities to agree on the debt treatment parameters by end-2023, before an agreement with private creditors on comparable terms is expected for mid-2024, paving the way for Ghana moving out of default,” Fitch pointed out in its comprehensive analysis of Frontier Markets.

The ratings agency further said the agreements with the two external creditors, will pave the way for Ghana to move out of its default position and a step towards addressing its unsustainable debt levels.

Most recently, Zambia and its external creditors reached an agreement on an external debt restructuring programme.

Meanwhile, Ghana is awaiting Executive Board approval from the IMF before securing a second tranche of the $3 billion bailout package consisting of $600 million.

The package, which is under an extended credit facility will cover a three-period with the view of restoring macroeconomic stability.

SSD/MA

Watch the latest edition of BizTech below:



Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.