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Ghana Secures Debt Restructuring Deal: Major Step Towards Financial Stability

In December 2022, Ghana defaulted on its external debt due to rising public debt, inflation, currency depreciation, and a growing fiscal deficit. This crisis led Ghana to seek help from international financial institutions, including the IMF, for debt restructuring and economic stabilization.
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Ghana has signed a memorandum of understanding (MoU) with its official creditors, formalizing a debt restructuring agreement reached last year. The announcement, made by Ghana's finance ministry, marks a crucial milestone in the country's ongoing efforts to recover from its December 2022 default on most of its external borrowing.
This MoU not only solidifies the terms agreed upon with the Official Creditor Committee back in June but also brings substantial debt-service relief as part of its International Monetary Fund (IMF) loan program. All participating creditor countries have now signed the deal, signaling a unified commitment to supporting Ghana's economic recovery.
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While this development is a major step forward, Ghana continues to negotiate with its commercial external creditors to finalize restructuring agreements with them. These discussions are vital for achieving comprehensive debt sustainability and ensuring that all aspects of the country's financial obligations are addressed.
The finance ministry emphasized that the signing of this MoU is a testament to the collaborative spirit and shared commitment towards securing Ghana's financial stability.