IMF Hopeful Ghana and Its Bilateral Creditors Will Secure a Deal Soon

The International Monetary Fund (IMF) seems hopeful that Ghana and its official bilateral creditors will reach a restructuring deal on its $4.5 billion debt soon.

Why is this important: Ghana defaulted on most of its external debt in December 2022 and needs to secure a restructuring deal with its creditors as a pre-condition for accessing the next $600 million IMF loan payment as part of the ECF (Extended Credit Facility). According to the Ghana-based IMF representative debt talks are progressing in anticipation of an imminent first programme review by the IMF Executive Board.

• The discussion between Ghana and the Official Creditor Committee, led by China and France covers how to restructure the country's $4.5 billion of debt.
• The country has agreed to a $3 billion bailout program with the IMF subject to certain economic reforms and debt restructuring conditions before tranches of loans can be released