The government has successfully secured $2.8 billion in debt relief from bilateral creditors, marking a significant step towards Ghana’s fiscal sustainability and economic recovery.
The Finance Minister, Mohammed Amin Adam announced this milestone at a press conference on July 1, 2024, highlighting the significance of the agreement under the G20 Common Framework for Debt Treatments.
The negotiations, which began after Ghana declared a debt standstill in December 2022, aimed to restructure $5.1 billion in official bilateral loans.
Mr Adam emphasized the extensive collaborative efforts that led to this favourable outcome and the crucial role of international cooperation in addressing global economic challenges.
“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,” he stated.
The agreement includes a revised payment schedule and lower interest rates, giving Ghana the opportunity to invest strategically in infrastructure, social programs, and economic diversification.
The Minister highlighted the positive impact of the debt relief on Ghana’s macroeconomic stability and long-term debt sustainability.
With reduced debt service obligations, Ghana is now better positioned to accelerate its economic recovery, enhance resilience against external shocks, and foster inclusive growth.
The successful restructuring of official bilateral loans reflects Ghana’s proactive approach to managing debt sustainability and creating a conducive environment for sustainable development.
This agreement with bilateral creditors is a critical milestone in Ghana’s journey towards economic stability, reinforcing confidence in the country’s ability to navigate global economic challenges and achieve its sustainable development goals.
Mr Adam expressed gratitude to the bilateral creditors, international financial institutions, and stakeholders for their support throughout the negotiation process.
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