Bilateral creditors have shared draft document on Ghana’s debt restructuring for consideration – Finance Minister

The Minister of Finance Dr Mohammed Amin Adam has said that bilateral creditors through the Official Creditor Committee have shared the draft document on Ghana’s debt restructuring for consideration.

He said this while addressing the press at the end of the IMF Spring meeting in Washington, D.C., on Sunday, April 21.

“ The Official Creditor Committee has shared the draft document with their members and as soon as they share the document with us and we are okay with that, then we have an agreement,” Dr Amin Adam said.

He further indicated that the government’s discussions with its external creditors, including bondholders, donors, and other development partners, were largely positive.

He, therefore, expressed optimism about reaching a Memorandum of Understanding (MoU) with the external creditors to facilitate the release of the third tranche of the ongoing International Monetary Fund’s (IMF) extended credit facility programme.

The Extended Credit Facility (ECF) provides medium-term financial assistance to low-income countries (LICs) with “protracted balance of payments problems.”

Ghana has received a total of $1.2 billion out of the $3 billion “rescue loan” from the global lender.

Addressing reporters at the end of the 2024 IMF Spring Meeting in Washington, D.C., on Sunday, April 21, Dr. Amin Adam underscored taking advantage of the meeting to consistently tell the progress Ghana has been making while under the IMF programme.

“In the last one week, we’ve held bi-lateral meetings with our development partners, creditors, our bondholders, donors, and other development partners, as well as investors and I can tell you that these discussions were largely very positive for us. I have consistently used the opportunity during these meetings to tell the story of the progress we are making in Ghana to restore macroeconomic stability and build resilience.”

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As part of measures to restore macroeconomic stability and debt sustainability to build resilience through the implementation of strong structural reforms and lay the foundation for stronger and more inclusive growth while protecting the poor and vulnerable, Ghana received IMF board approval for the disbursement of $3 billion under the ECF programme.

However, the West African country needs to secure an MoU with its external creditors to complete the third review process by the global lender.

The Fund has over the years created a platform for policymakers and development partners to discuss development and poverty reduction issues extensively.

IMF SPRING MEETING: FINANCE MINISTER ON GHANA’S CHANCES OF SECURING SECOND TRANCHE.#3NEWSGH PIC.TWITTER.COM/FPYVG36XAA

— #TV3GH (@TV3_GHANA) APRIL 21, 2024

The 2024 Spring Meeting largely focused on economic recovery and building resilience, debt sustainability and climate change.

Meanwhile, a financial analyst, Mr. Joe Jackson, has observed that Ghana risks not receiving the $360 million 3rd tranche from the Bretton Wood Institution following reports that the county has been unable to reach a debt agreement with its external bondholders.

Reuters reported that Ghana has failed to strike a deal with two bondholder groups to restructure $13 billion of international bonds.

In a post on his X platform, Mr. Joe Jackson said, “Bad news for the economy. IMF staff-level agreement of another USD 360 million for Ghana is at risk. Stability for the Cedi could be a mirage.”