Ghana Secures Debt Restructuring Deal with India

Ghana Secures Debt Restructuring Deal with India

Ghana has taken a significant step towards restoring debt sustainability with the signing of its 11th bilateral debt restructuring agreement, this time with the Export-Import Bank of India. According to Finance Minister Dr. Cassiel Ato Forson, the deal marks another milestone in the country’s efforts to manage its debt burden.

The agreement is part of Ghana’s broader strategy to restructure its external debt and achieve macroeconomic stability. Dr. Forson emphasized that the deal with the Export-Import Bank of India will help alleviate the country’s debt servicing pressures and create fiscal space for development projects.

The Minister did not disclose the specific terms of the agreement, but indicated that the deal is a testament to Ghana’s commitment to honoring its financial obligations. The country has been engaging with its creditors to restructure its debt, which stood at $27.4 billion as of December 2023.

Ghana’s debt restructuring efforts have garnered support from international partners, including the International Monetary Fund (IMF), which has provided a $3 billion bailout package to help the country navigate its economic challenges.

The deal with the Export-Import Bank of India is expected to provide Ghana with much-needed breathing space to implement economic reforms and stimulate growth. The government remains committed to its fiscal consolidation program and is working towards achieving sustainable debt levels.

Source: #3NewsGH

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Author: Stella Sunu