Ghana meets debt comparability treatment with creditor committee

Ghana’s debt treatment with the Eurobond holders is consistent with the Comparability of Treatment principle, the Ministry of Finance has announced.

In a statement copied to the Ghana News Agency on Monday, July 8, the Ministry said it had received an official confirmation from its Official Creditor Committee (OCC) in that regard.

The debt comparability treatment formed part of the OCC Common Framework for debt restructuring, requiring that the country met comparable treatment of debt due to all its other external creditors in the scope of the restructuring.

It is aimed at ensuring the restoration of debt sustainability and preventing a disorderly default by providing a significant flow of relief to Ghana during the three-year International Monetary Fund (IMF) programme implementation.

“The Government intends to continue proactive engagement with the Steering Committees to finalise documentation and proceed promptly with the consent solicitation,” the statement said.

“The government thanks its official partners as well as representatives from the two Bondholders’ Committees for their constructive engagement over the past weeks,” it stated.

Ghana received a third tranche of US$360 million of the IMF loan-support programme on July 1, after reaching an agreement last month with Eurobond holders, who would forego US$4.7bn with extra US$4.4bn relief to the country.