Ghana has reached an agreement with its official creditors under the G20 Framework for Debt Treatment, as announced by the country’s Ministry of Finance. This arrangement is anticipated to channel additional resources towards public investments within the nation.
Kristalina Georgieva, managing director of the International Monetary Fund (IMF), stated that this development enables the IMF Executive Board to consider a review of Ghana's extended credit facility arrangement. Georgieva's announcement was made on January 12.
Georgieva said, "I welcome Minister of Finance Ofori-Atta’s announcement that the Ghanaian authorities have reached an agreement in principle with their official creditors on a debt treatment, consistent with the objectives of the IMF-supported program. This program aims to restore macroeconomic stability and debt sustainability, build resilience, and lay the foundations for stronger and more inclusive growth. I want to thank the Official Creditor Committee, especially the co-chairs, China and France, for all their work to reach this agreement. This is another substantial milestone for the G20 Common Framework under which G20 creditors joined forces to agree on debt relief for Ghana."
According to an announcement from Ghana's Ministry of Finance on January 23, there has been a significant decrease in inflation from 54.2% in December 2022 to 23.2% in December 2023. Furthermore, the country's gross domestic product grew by 2.8% in the first quarters of 2023, surpassing the initial growth target of 1.5%. The specifics of the debt treatment have not yet been officially announced; however, it is expected that these terms will be finalized in a memorandum of understanding between Ghana's government and its official creditors and implemented with each member of the Official Creditor Committee.
In May 2023, Ghana sought an arrangement under IMF’s Extended Credit Facility (ECF), building upon a post-COVID 2019 program for economic growth. A report on Ghana's request for the ECF agreement stated that securing agreements with external creditors was crucial to this new arrangement. The report identified tax policy reforms, public financial management, and strengthening of the energy and cocoa sectors as means to enhance the country's economic stability before their request could be considered.