Ghana sends debt restructuring proposal to official creditors - Report

Ghana has sent a debt restructuring proposal to its official creditors, a Reuters report has noted.

According to the report, the “working proposal” is the country’s first step to engaging the official creditor committee that was formed in May, however, the proposal is not legally binding.

The formation of the creditor committee was the gateway for the approval of the $ 3 billion loan facility from the International Monetary Fund.

However, the sending of the proposal makes the “opening of a more detailed negotiating process that will likely see a number of proposals being exchanged,” Reuters noted.

Earlier Finance Minister Ken Ofori-Atta after the approval of the IMF deal noted that it was not yet clear what debt relief the external creditors were going to give to the country.

Ghana is seeking to cut $10.5 billion in interest payments on its external debt over the next three years to successfully implement the $3 billion programme from the IMF.

As of the end of 2022, China, Ghana’s largest creditor, and other members of the Paris Club of creditor nations sum up to $5.4 billion of the $20 billion external debt the country seeks to restructure.

Ghana’s total external debt stock stood at about $30 billion.

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