Ghana secures interim debt deal with bondholders

Ghana has reached an interim debt relief deal with its bondholders, Finance Minister Mohammed Amin Adam has said.

This comes days after the International Monetary Fund (IMF) reached a staff-level agreement on the second review of the extended credit facility with the country.

The development also moves Ghana a step closer to finalising a debt deal with its external creditors, which will enable the country to access roughly US$360 million in financing from the IMF.

However, the staff-level agreement awaits approval from the IMF management and will be completed formally by the executive board.

“It [the debt deal with bondholders] must still be tweaked to meet IMF debt sustainability,” a statement on the minister’s X handle said.

Update on External Debt Operations: Ghana and Bondholders reached an interim deal, which must still be tweaked to meet IMF debt sustainability targets. We will therefore regroup to continue negotiations until we reach a deal that is consistent with IMF debt sustainability targets

— Office of the Finance Minister-Ghana (@oofmghana) April 15, 2024

The Finance Minister, Mohammed Amin Adam, is leading a delegation to the 2024 Spring Meetings in Washington, DC in the United States.

The team is expected to continue its negotiations with external creditors during the meetings.

“We will, therefore, regroup to continue negotiations until we reach a deal that is consistent with IMF debt sustainability targets,” the Finance Minister announced on his X handle.

Reporting by Nana Oye Ankrah in Washington, DC