Debt Restructuring: Government Reports Ongoing Progress with Remaining Creditors

The Government of Ghana has reaffirmed its commitment to a balanced and transparent debt restructuring process, announcing continued progress in negotiations with all remaining creditors within the restructuring perimeter. This assurance was communicated to the country’s international development and financial partners through a formal statement issued by the Ministry of Finance.

According to the Ministry, discussions with the outstanding creditors are advancing positively, reinforcing the government’s objective of reaching a comprehensive and fair resolution that supports Ghana’s economic recovery and long-term debt sustainability. “The government remains committed to achieving a fair and mutually beneficial resolution with all creditors and thanks its partners for their forbearance, cooperation, and support,” the statement read.

This renewed engagement with external creditors is a key component of Ghana’s broader economic reform strategy, particularly under the G20 Common Framework for Debt Treatments, an initiative aimed at supporting countries facing unsustainable debt burdens while maintaining principles of fairness and transparency across creditor groups.

The Ministry highlighted that no creditor has received preferential treatment during the restructuring process, in full adherence to the internationally recognized principle of Comparability of Treatment. This principle ensures that all creditors are treated equally and equitably in any debt relief arrangement, promoting cooperation and consistency across the board.

“We have strictly applied the provisions outlined in the Memorandum of Understanding (MoU) signed with our official creditors,” the Ministry noted. “In particular, we have continued to remain in arrears with all external creditors included in the debt restructuring perimeter, in accordance with the agreed terms.”

This statement comes at a crucial time as Ghana navigates its path toward macroeconomic stability following a period of heightened fiscal pressures and global economic headwinds. The country, like many others in the developing world, has faced rising debt levels exacerbated by external shocks, including the COVID-19 pandemic, energy price volatility, and disruptions in global supply chains.

To address these challenges, Ghana entered into a debt restructuring programme as part of efforts to meet the conditions of its three-year Extended Credit Facility (ECF) agreement with the International Monetary Fund (IMF). The programme, valued at approximately $3 billion, aims to restore debt sustainability, rebuild foreign reserves, and catalyze economic growth through policy reforms and institutional strengthening.

Securing broad-based support from all creditor groups—bilateral, multilateral, and private—is essential for the success of the programme. The government’s emphasis on equitable treatment is intended to build trust and facilitate consensus among stakeholders. Ghana has already reached key milestones with some of its official creditors and continues to work closely with bondholders and other private lenders to finalize remaining agreements.

In addition to creditor engagement, the government has taken steps to enhance transparency and accountability throughout the restructuring process. Regular updates are being provided to stakeholders, and technical teams have been working closely with multilateral institutions to ensure that all processes are aligned with best practices in sovereign debt management.

The Ministry’s recent statement underscores Ghana’s continued commitment to international cooperation and financial discipline. As negotiations advance, the government remains optimistic about reaching a timely and comprehensive debt resolution that lays the groundwork for sustained economic recovery and inclusive growth.

With ongoing support from the international community and a strong domestic reform agenda, Ghana is positioning itself to emerge from the current economic challenges with renewed fiscal resilience and improved investor confidence.