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Ghana Signs Mou with its Official Creditors for Ensuring Viability of Public Finances

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Ghana Signs Mou with its Official Creditors for Ensuring Viability of Public Finances

(3 Minutes Read)

The reworking of its debt has been a long-standing issue for the gold and cocoa-producing country after it defaulted on most of its external borrowing in 2022.

Ghana says it has signed a memorandum of understanding with its official creditors. It is an essential process in restoring the viability of its public finances.

Finance minister, Cassiel Ato Forson, says this formalises a debt restructuring plan agreed to with its Official Creditor Committee in June last year. The reworking of its debt has been a long-standing issue for the gold and cocoa-producing country after it defaulted on most of its external borrowing in 2022.

But now it says all participating creditor countries have signed the deal. It marks a strategic turning point for the country as it seeks to stabilise its economy and return to sustainable growth. The ministry says the deal will provide significant debt-service relief over its International Monetary Fund loan program.

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With 93 per cent of the restructuring process complete, it remains to finalise negotiations over the remaining 7 per cent, which is mainly with commercial creditors. It is currently in talks with 60 international banks to rework its remaining USD 2.7 billion in loans. Ghana is committed to speeding up the process to finalise agreements with them.