Government secures landmark debt agreement with Official Creditors Committee

Government has successfully negotiated a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC) concerning the debt resolution terms established in January 2024.

The Ministry of Finance noted that the OCC, jointly led by China and France, has been instrumental in reaching this significant milestone.

The Ministry explained that the MoU solidifies the preliminary agreement with the official creditors from January, signifying a pivotal move towards reestablishing Ghana's long-term fiscal stability.

It also indicates that finalizing the Official Creditor Committee's terms will clear the path for the International Monetary Fund's (IMF) endorsement, facilitating the release of a subsequent IMF funding installment of $US360 million.

The IMF Board's green light is expected to unlock additional financial support from developmental allies, notably the World Bank. This accord is also anticipated to enhance ongoing negotiations with private lenders, as Ghana is eager to secure a similar settlement promptly.

The Ministry, in a statement said, “Each official creditor will now follow its internal procedures to sign the MoU. Once signed, the agreed terms will be implemented through bilateral agreements with each OCC member We call upon our official creditors to fast-track their internal processes towards the signing of the bilateral agreements."

“Ghana continues to engage in good faith with all commercial external creditors, striving to finalise restructuring agreements that respect Ghana’s need for debt relief and the comparability of treatment principle. Ghana also reiterates its firm commitment to remain in arrears with its external commercial creditors until agreements compatible with the comparability of treatment principle are reached,” it added.

The Ministry urged the official creditors to expedite their internal proceedings for the signing of these bilateral agreements.

Dr. Mohammed Amin Adam, the Finance Minister, expressed the Ministry of Finance's deep appreciation to all OCC members, especially the co-chairs, China and France, for their steadfast dedication to aiding Ghana in addressing its financial challenges.

“The Ministry of Finance on behalf of the Republic of Ghana extends our gratitude to all members of the OCC. particularly the committee’s co-chairs. China and France, for their unwavering commitment to assisting our country in resolving its debt issues," it added.

He remarked that this landmark accord is a significant achievement in Ghana's journey of debt restructuring and is poised to amplify the country's reform initiatives, bolstered by the robust backing of its developmental partners.

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