The government of Ghana has successfully negotiated a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC) regarding the debt treatment agreed upon in January 2024. The OCC, co-chaired by China and France, played a crucial role in achieving this milestone.
The MoU formalizes the agreement in principle reached with Official Creditors in January and is a significant step towards restoring Ghana’s long-term debt sustainability. The financial terms of the agreement remain unchanged, providing substantial debt service relief during the Fund-supported program period.
This relief will enable financial resources to be directed towards critical areas such as infrastructure, healthcare, and education. The formalization of the OCC agreement is expected to pave the way for the IMF Executive Board’s approval of the second review of the Fund-supported Post Covid-19 Programme for Economic Growth (PC-PEG).
This approval will enable the disbursement of the next tranche of IMF financing amounting to US$360 million. The IMF Board’s approval is also expected to trigger additional financial assistance from development partners, particularly the World Bank.
Ghana remains committed to finding a comparable agreement with private creditors and continues to engage in good faith with all commercial external creditors. The Ministry of Finance has expressed gratitude to all members of the OCC, particularly China and France, for their unwavering commitment to assisting Ghana in resolving its debt issues.
