Accessibility links

Breaking News

Ghana Seeking G20 Help

FILE: Ghana President Nana Akufo Addo. Taken Dec. 13, 2022

Ghana is requesting on Tuesday to restructure its debt with official bilateral creditors under the common framework platform supported by the Group of 20 major economies, two sources told Reuters

Ghana's debt restructuring under the common framework aims to include non-Paris club members such as China in debt relief talks. China is Ghana's biggest bilateral creditor with $1.7 billion of debt, according to the International Institute of Finance (IIF) data.

The West African country will ask bilateral creditors to form a committee as soon as possible, aiming for an "expedited treatment" on over $5 billion of debt, said one of the sources, who asked not to be named because the talks are private.

The formation of an official creditor committee is a key step the country needs to formally seek financial assurances from bilateral creditors that they are willing to enter a debt rework process.

The request comes as part of a virtual presentation by Ghana's finance ministry hosted under the auspices of the group of creditor nations known as the Paris Club, the source added.

Reuters reported first on January 5 that Ghana was seeking debt treatment under the G20 program.

The crisis-hit country, which secured a $3 billion staff-level agreement with the International Monetary Fund (IMF) in mid-December, has been hesitating on this request due to the long delays faced by other countries using the process.

Ghana would be the fourth country to apply to the initiative launched in 2020 to streamline debt restructuring efforts in the wake of poorer countries buckling under the fallout from the COVID-19 pandemic.

The platform has been widely criticised for its glacial progress. While Chad secured a deal with creditors in November, Zambia is still locked in talks and Ethiopia's progress was held up by civil war.

Without these assurances, the IMF's executive board would delay the program's approval and in consequence, money disbursements.