Report By: Ishmael Barfi
The Government of Ghana has achieved a significant milestone in its debt restructuring efforts, signing a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC).
This landmark agreement formalizes the debt treatment plan, paving the way for long-term financial stability and providing substantial debt service relief during the ongoing International Monetary Fund (IMF)-supported program.
The MoU, endorsed by all participating creditor nations, marks a crucial step in Ghana’s journey towards restoring debt sustainability and achieving economic resilience. The agreement is expected to provide substantial debt service relief, allowing the government to redirect financial resources towards economic recovery initiatives.
According to the Ministry of Finance, the MoU signing is a testament to the strong collaboration between Ghana and its creditors. “We are grateful to the OCC, particularly its co-chairs, China and France, for their unwavering support in helping Ghana navigate its debt challenges,” said a spokesperson for the Ministry.
With the MoU in place, Ghana will now proceed with bilateral agreements with each creditor country to implement the agreed terms. The government has reaffirmed its commitment to working closely with creditors to expedite this process.
Ghana’s debt restructuring efforts have been ongoing for several months, with the government engaging with various creditor groups to finalize restructuring agreements. The country has already made significant progress, having successfully restructured over 90% of its eligible external debt.
The MoU signing is a major breakthrough in Ghana’s debt restructuring efforts, and is expected to have a positive impact on the country’s economy.
The agreement is seen as a critical step towards restoring debt sustainability, and will help to improve Ghana’s creditworthiness and attract foreign investment.
The Government of Ghana has expressed its commitment to continuing to work with its creditors to finalize the debt restructuring process. With the MoU in place, Ghana is now one step closer to achieving its goal of debt sustainability and economic resilience.
Source: www.thenewindependentonline.com
