Ghana formally initiates debt restructuring by signing an official creditor memorandum

Ghana’s finance ministry said on Wednesday that it had formalized a debt restructure agreed upon last year by signing a memorandum of understanding with its official creditors.

After the West African gold and cocoa producer defaulted on the majority of its external borrowing in December 2022, the signing of the contract marks the most recent turning point in its protracted debt restructuring story.

In June of last year, Ghana and its Official Creditor Committee came to an agreement.

According to a statement from the finance ministry, the agreement has now been signed by all participating creditor nations and offers substantial debt-service relief through the International Monetary Fund loan program.

According to the statement, Ghana is continuing in contact with its commercial foreign creditors in order to finalize restructuring arrangements with them.