Ghana finalizes debt restructuring agreement with 25 creditor nations

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Lagos, Nigeria – Ghana has secured a major milestone in its debt restructuring process, with all 25 participating creditor countries signing a Memorandum of Understanding (MoU). The agreement marks a crucial step in the country’s efforts to restore financial stability under its $3 billion International Monetary Fund (IMF) program.

AfricaHeadline Reports Team
editorial@africaheadline.com 

Finance Minister Dr. Cassiel Ato Baah Forson confirmed the development during a press briefing, calling it a critical breakthrough in Ghana’s debt recovery plan.

“The MoU reached with the Official Creditors Committee in June is now fully signed by all 25 creditor countries. This is a significant step in stabilizing Ghana’s economy and ensuring a sustainable debt structure,” he said.

The agreement formalizes terms with bilateral lenders, setting the framework for debt restructuring and repayment.

Ghana’s debt restructuring aims to bring the country’s debt-to-GDP ratio below 55% by 2028, down from an estimated 84.9% in 2023. It also seeks to reduce the debt service-to-revenue ratio to under 18% by 2028, ensuring a more manageable fiscal outlook.

The restructuring process, initiated in June 2024 by former Finance Minister Mohamed Amin Adam, has been accelerated under the current administration. The Official Creditors Committee, co-chaired by China and France, played a key role in reaching the final agreement.

With 93% of the restructuring completed, the government is now focusing on negotiations with commercial creditors, including bondholders and private lenders, to resolve the remaining 7% of outstanding external debt.

“Discussions with commercial creditors are ongoing, and we expect further progress in the coming weeks to finalize the debt treatment,” Forson stated.

The negotiations will follow comparability of treatment principles, ensuring fair and balanced terms across all creditor groups.

The restructuring aligns with IMF conditions and enhances Ghana’s ability to attract investment and international financial support. The government is shifting focus to domestic revenue mobilization, expenditure control, and economic growth initiatives to solidify financial stability.

Forson emphasized that the agreement provides a clear pathway for economic recovery, positioning Ghana for long-term fiscal sustainability.

“This milestone reflects Ghana’s commitment to economic discipline and reform. It marks a turning point in our financial management and strengthens our outlook for sustainable growth,” he said.

The agreement unlocks additional IMF funding and enhances Ghana’s standing with international financial institutions, reinforcing confidence in the country’s economic trajectory.