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Ghana Advances Toward China Debt Restructuring Deal

Published 2 days ago1 minute read
Finance Minister’s Official Visit

The discussions with China’s Ministry of Finance and Export-Import Bank mark a critical step toward restructuring Ghana’s obligations under the G20 Common Framework and IMF-supported recovery program.

China, Ghana’s largest bilateral creditor, holds pivotal influence over the country’s debt treatment. Successful restructuring would unlock further IMF disbursements and fiscal space for President Mahama’s development priorities. Ghana defaulted on external debt in 2022 amid economic pressures compounded by COVID-19 impacts and currency depreciation.

Minister Forson characterized the negotiations as “a monumental step forward,” emphasizing their role in closing “a difficult chapter” while pledging to avoid future unsustainable borrowing. The proposed terms aim to reduce interest payments gradually, enabling increased pro-poor spending and insulating economic gains from debt servicing burdens.

The Mahama administration views the breakthrough as foundational to Ghana’s economic reset agenda. Finalized terms would bolster investor confidence and align with ongoing fiscal reforms under Ghana’s $3 billion IMF Extended Credit Facility. Technical teams from both nations are expected to formalize agreements in the coming weeks.

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