Government has successfully negotiated debt relief totaling $2.8 billion from bilateral creditors, marking a significant milestone in Ghana’s efforts to achieve fiscal sustainability and economic recovery.
Finance Minister Mohammed Amin Adam announced the breakthrough at a press conference on July 1, 2024, emphasizing the importance of the agreement under the G20 Common Framework for Debt Treatments.
The negotiations, initiated following Ghana’s debt standstill announcement in December 2022, aimed at restructuring official bilateral loans totaling $5.1 billion with the Minister highlighting the extensive collaborative efforts that led to this favorable outcome, emphasizing the importance of international cooperation in navigating global economic challenges.
Minister Adam stated, “We have reached a pivotal agreement with our official bilateral creditors, resulting in substantial debt service relief amounting to $2.8 billion between 2023 and 2026. This agreement underscores our commitment to prudent fiscal management and sustainable economic growth.”
The agreement includes a revised payment schedule and reduced interest rates, providing Ghana with breathing room to focus on strategic investments in infrastructure, social programs, and economic diversification. Minister Adam underscored the positive impact of the debt relief on Ghana’s macroeconomic stability and long-term debt sustainability.
With reduced debt service obligations, Ghana is better positioned to accelerate its economic recovery, strengthen resilience against external shocks, and foster inclusive growth. The successful restructuring of official bilateral loans is a testament to Ghana’s proactive approach to addressing debt sustainability and fostering a conducive environment for sustainable development.
This agreement with bilateral creditors represents a critical milestone in Ghana’s journey towards economic stability, bolstering confidence in its ability to navigate global economic challenges and achieve sustainable development goals. Minister Adam expressed gratitude to bilateral creditors, international financial institutions, and stakeholders for their support throughout the negotiation process.