Ghana calls on Official Creditors to fast-track signing of bilateral agreements

Ghana has called on its official creditors to expedite their internal processes to sign bilateral agreements, following the government’s announcement of a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC).

A statement issued by the country’s Ministry of Finance communicating the agreement on the MoU stated that “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.”

The ministry stated that it 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,” the ministry stated in its release.

MoU Formalises Debt Treatment

The MoU formalizes the agreement in principle reached with official creditors in January 2024, marking a crucial step towards Ghana’s long-term debt sustainability ¹.

 Implementation of Agreed Terms

Once signed, the agreed terms will be implemented through bilateral agreements with each OCC member, providing significant debt service relief during the Fund-supported program period ¹.

Engagement with Commercial Creditors

Ghana continues to engage with commercial external creditors to finalize restructuring agreements that respect the country’s need for debt relief and the comparability of treatment principle ¹.

IMF Approval and Financial Assistance

The formalization of the OCC agreement paves the way for IMF Executive Board approval, allowing for the disbursement of $360 million and triggering more financial assistance from development partners, including the World Bank.

The agreement will also bolster the current and ongoing discussions with private creditors, with whom Ghana remains committed to finding a comparable agreement as early as possible.

It maintained that the financial terms of the agreement remain unchanged and it provides significant debt service relief during the Fund-supported program period, allowing financial resources to be directed towards critical areas such as infrastructure, healthcare and education.