The government provides $2.8 billion in relief from bilateral creditors

The Government of Ghana says it has successfully negotiated $2.8 billion in debt relief from bilateral creditors, marking an important milestone in Ghana’s efforts to achieve fiscal sustainability and economic recovery.

Finance Minister Mohammed Amin Adam announced the progress at a press conference on July 1, 2024, highlighting the importance of the agreement under the G20 Common Framework for Debt Treatments.

The negotiations, launched following the announcement of Ghana’s debt freeze in December 2022, aimed at restructuring official bilateral loans totaling $5.1 billion, with the Minister highlighting the extensive collaborative efforts that led to this favorable outcome, stressing the importance of international cooperation in navigating global economic challenges.

Minister Adam stated, “We have reached a substantial agreement with our official bilateral creditors, resulting in significant debt service relief amounting to $2.8 billion between 2023 and 2026. This agreement underscores our commitment to prudent fiscal management and growth economic stability.”

The agreement includes a revised payment schedule and reduced interest rates, giving Ghana room to focus on strategic investments in infrastructure, social programs and economic diversification. Minister Adam highlighted the positive impact of debt relief on Ghana’s macroeconomic stability and long-term debt sustainability.

With reduced debt service obligations, Ghana is better positioned to accelerate its economic recovery, strengthen resilience to external shocks and foster inclusive growth. The successful restructuring of official bilateral loans is a testament to Ghana’s proactive approach to addressing debt sustainability and fostering an enabling environment for sustainable development.

This agreement with bilateral creditors represents a milestone in Ghana’s journey towards economic stability, strengthening confidence in its ability to navigate global economic challenges and achieve sustainable development goals. Minister Adam expressed his gratitude to bilateral creditors, international financial institutions and interested parties for their support throughout the negotiation process.

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