After China and France jointly established the Official Creditor Committee, Ghana was granted funding assurances by the Paris Club.
This comes months after Ghana attempted to secure funding guarantees from its foreign creditors in order to qualify for the requisite bailout assistance from the International Monetary Fund.
This action will open the door for the Fund’s Board to approve a program for Ghana, with a target completion date of May 2023.
The nation will also be able to obtain a $3 billion Extended Credit Facility (ECF) thanks to the approval, which will improve its balance of payments.
The Paris Club today formed the Official Creditor Committee, which will be co-chaired by China and France, according to a message posted on the Finance Ministry’s official Twitter account on Friday.
“With the granting of Financing Assurances, Ghana is now ready to go to the IMF Board.”
The IMF financing program is a component of a larger initiative to assist developing nations as they recover from the effects of the Covid-19 pandemic.
“The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs.”
“Consistent with their national laws and internal procedures, creditor committee members are committed to negotiate with the Republic of Ghana terms of a restructuring of their claims to be finalized in a Memorandum of Understanding (MoU), in accordance with the ‘Common Framework for Debt Treatments beyond the DSSI’,” In a joint statement, the Creditor Committee for Ghana stated.