Dr. Mohammed Amin Adam
In an important development, Ghana has successfully reached an interim debt relief deal with its bondholders, according to the country’s Finance Minister, Mohammed Amin Adam.
This positive outcome comes shortly after the International Monetary Fund (IMF) reached a staff-level agreement for the second review of Ghana’s extended credit facility.
The interim debt relief deal with bondholders brings Ghana one step closer to finalizing an agreement with its external creditors.
Once finalized, Ghana will be able to access approximately US$360 million in financing from the IMF.
Although the staff-level agreement reached by the IMF awaits approval from the organization’s management, it is expected to be formally completed by the executive board in the near future.
The Finance Minister’s statement emphasized that the debt deal with bondholders will still need to be adjusted to meet IMF debt sustainability requirements. This suggests that further negotiations and fine-tuning will be necessary to align the deal with the IMF’s targets.
In light of these developments, Finance Minister Mohammed Amin Adam is leading a delegation to the 2024 Spring Meetings in Washington, DC. During these meetings, the team is expected to continue negotiations with external creditors in order to work towards a finalized agreement.
“We will, therefore, regroup to continue negotiations until we reach a deal that is consistent with IMF debt sustainability targets,” announced the Finance Minister on his official social media handle.
Ghana’s progress towards securing debt relief and finalizing agreements with bondholders and external creditors is a positive step forward for the country’s financial stability and economic growth.
By Vincent Kubi