Ghana to receive fresh MoU with bilateral lenders in May, says finance minister
Ghana’s Finance Minister has announced that the country’s bilateral creditors will present a fresh Memorandum of Understanding (MoU) on a debt restructuring arrangement in May.
The MoU, once signed, would seal a January agreement to restructure $5.4 billion in loans with its formal creditors, including China and France.
The restructure is a significant step forward in Ghana’s search for debt relief as it navigates the worst economic crisis in a generation, and it should unlock additional tranches of its $3 billion IMF programme.
While speaking on the margins of the IMF and World Bank Spring Meetings in Washington, the minister, Mohammed Amin Adam, expressed optimism that the International Monetary Fund’s executive board would support the revision of its staff-level agreement in June.
Regarding the negotiations with Eurobond and commercial creditors, the Minister of Finance stated that they have made significant strides and that a settlement would be achieved soon.
Ghana recently failed to secure a workable debt deal with two bondholders groups in its push to restructure $13 billion of international bonds.
In December 2022, Ghana defaulted on most of its $30 billion external debt as it fell into an economic chaos.
It has since started to recover, with 2023 growth of 2.9% exceeding the IMF’s 2.3% forecast from January.
