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According to three sources who spoke to Reuters, Ghana’s official creditors will convene on Monday to discuss restructuring the country’s loans totaling about US$5.4 billion. This is a crucial step towards securing the country’s next funding tranche from the International Monetary Fund (IMF).
Ghana’s $20 billion in external debt that is designated for restructuring is held by the bilateral lenders, which include the governments of China and France, who co-chair the Official Creditor Committee (OCC). Approximately 25% of the debt exists now.
According to people with knowledge of the situation, the meeting will likely center around reaching a consensus regarding a “cut-off date” the deadline beyond which new loans from bilateral creditors will not be restructured. Ghana’s debt rework has run into trouble with defining this date.
According to sources, some creditors would prefer December 31, 2022, as the deadline because Ghana had already defaulted on its debt earlier that month.
Some, however, advocated for March 24, 2020, as that is when the Group of 20 unveiled their debt service suspension initiative (DSSI), intended to assist the world’s poorest nations in addressing the aftermath of the COVID-19 pandemic. Ghana refrained from taking part in the DSSI.
The Paris Club of major creditor nations, which does not include China among its permanent members, will meet on Friday in anticipation of the OCC meeting on January 8, 2024, according to two sources.
According to one of the sources with direct knowledge, the Paris Club this week shared a technical note on Ghana with other bilateral and multilateral lenders. The note also stated that the group of wealthy countries is suggesting December 2022 as the deadline.
“Ghana is still about cut-off date, but creditors haven’t agreed yet,” the source said. “If the cut-off date is agreed, that means an agreement on debt restructuring is close.”
Source: Ghanatodayonline.com
