IMF Optimistic About Ghana's External Debt Restructuring Agreement

 

(Julie Kozack, Director of Communications, IMF)

The International Monetary Fund (IMF) has reiterated its optimism that the Official Creditor Committee and the Ghanaian government will soon reach an agreement on the restructuring of external debt. With over half of Ghana's $52.3 billion debt held by external creditors, including Eurobond holders and banks, a significant debt reduction is crucial to the government's efforts to reduce overall debt.

Speaking at a press conference, Julie Kozack, Director of Communications at the IMF, emphasized the importance of the government finalizing the restructuring of its domestic debt. Both UK-based Fitch Solutions and the Economist Intelligence Unit (EIU) believe that an agreement between Ghana and the Official Creditor Committee will be reached by the end of the year, paving the way for the commencement of the external debt restructuring process.

According to Kozack, the next steps in debt restructuring involve reaching an agreement between the Official Creditor Committee and the Ghanaian authorities on the specific modalities of debt relief. Additionally, the authorities need to continue engaging with external private creditors to seek relief on the country's external debt. These discussions are currently ongoing, and there is hope that an agreement will be reached soon. Kozack also highlighted that the government has recently finalized the restructuring of its domestic debt.

Furthermore, an IMF Mission is currently in Accra, Ghana, to assess the government's performance and discuss policy measures for the first review of the program. The objective is to present the review to the IMF's Executive Board in November 2023.

Ghana's program, supported by the IMF, focuses on three key objectives: restoring macroeconomic stability, ensuring debt sustainability, and laying the foundations for higher and more inclusive growth. The program also includes a range of reforms aimed at building resilience while safeguarding the most vulnerable segments of society.

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As debt restructuring discussions continue and reforms are implemented, the IMF remains cautiously optimistic about Ghana's economic trajectory and the government's commitment to achieving fiscal stability and sustainable growth.