Ghana continues to work towards a final agreement with international bondholders for restructuring approximately $13 billion of its foreign debt.
On Monday, April 15, the Finance minister’s office stated that an interim deal had been secured and discussions with bondholders were still underway.
Despite efforts, Reuters noted that Ghana has yet to finalize a viable debt arrangement with two major bondholder groups.
Ghana aims to finalize an agreement in line with the IMF’s debt sustainability guidelines.
This challenge comes after Ghana defaulted on a significant portion of its $30 billion external debt over a year ago, posing a setback for the nation.
Commercial lenders, including bondholders like BlackRock, hold 76% of Ghana’s foreign debt. Additionally, multilateral development banks, the Paris Club, and China also hold considerable portions of Ghana’s debt.
The ongoing debt crisis exacerbates the economic challenges for Ghanaians, with the local currency depreciating against the US dollar and inflation rising.
In January, the IMF sanctioned a $600 million disbursement for Ghana as part of its loan program.
Finance Minister Dr. Mohammed Amin Adam highlighted on April 14 that despite 2024 being an election year, the government has implemented robust oversight mechanisms to ensure compliance with IMF program targets.
Currently, the minister is at the forefront leading Ghana’s delegation to the IMF/World Bank Spring Meetings in Washington DC.