Ghana signs MoU with Official Creditor Committee to restructure debt

The Government of Ghana, through the Ministry of Finance, has successfully signed a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC), marking a major milestone in the country’s efforts to resolve its ongoing debt challenges.

The MoU has been agreed upon by all participating creditor countries, signaling a collective commitment to supporting Ghana in its bid to restore long-term debt sustainability.

This agreement formalises the debt treatment plan previously negotiated with the official creditors, providing Ghana with crucial debt service relief during the period of its IMF-supported program.

The relief will allow the country to allocate more financial resources toward strengthening its economic recovery efforts.

With the MoU now signed, Ghana is set to implement the agreed terms through bilateral agreements with each of the participating creditor countries.

In a statement issued by the Ministry of Finance on January 29, 2025, the government reaffirmed its commitment to working closely with its official creditors to expedite the signing of these bilateral agreements and ensure the timely execution of the debt restructuring plan.

The government also expressed its gratitude to the members of the OCC, particularly co-chairs China and France, for their steadfast support in the country’s debt restructuring process.

“Ghana continues to engage in good faith with all commercial external creditors, striving to finalize restructuring agreements that respect Ghana’s need for debt relief and the principle of comparability of treatment,” the statement concluded.

The government has already implemented a Domestic Debt Exchange Programme (DDEP), which is reported to have saved the country approximately $12 billion.

This program involved restructuring domestic bonds.

The government is now focusing on restructuring its external commercial debt, including the $2.7 billion in loans currently under negotiation.

See the statement below:

MA

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