IMF Optimistic About Ghana’s Progress in Debt Restructuring Talks with Official Creditors

The International Monetary Fund (IMF) expressed optimism that Ghana and its official bilateral creditors are making progress toward a debt restructuring deal. The Official Creditor Committee, co-chaired by China and France, is engaged in discussions with Ghanaian authorities, and the IMF Resident Representative for Ghana, Leandro Medina, mentioned that the talks are showing promising progress. Ghana defaulted on a significant portion of its external debt in December 2022, and successful debt restructuring is crucial for implementing the IMF loan deal and navigating the country out of its severe economic crisis. The hope is that an agreement with official creditors will be reached soon, facilitating the presentation of the first Extended Credit Facility (ECF) program review to the IMF Executive Board. If achieved, this progress would enable the disbursement of another $600 million under the $3 billion IMF bailout program. Ghana’s international bonds responded positively to expectations of a draft term sheet from official creditors for restructuring $4.5 billion of debt, with bond prices rising. The nation faces the task of securing restructuring deals with various creditors to stabilize its financial situation.

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