The Ministry of Finance has clarified that while an interim agreement has been reached with external bondholders, Ghana must still modify the deal to align with debt sustainability targets set by the International Monetary Fund (IMF).
This clarification comes in response to concerns raised by certain economic sectors regarding Ghana’s failure to finalize an agreement with two bondholder groups to restructure $13 billion of international bonds.
According to the Ministry, negotiations have temporarily halted due to feedback from the IMF indicating that the proposed deal does not meet the organization’s parameters for debt sustainability, which determine a country’s manageable debt levels.
In a statement released on Monday, April 15, via X (formerly known as Twitter), the Office of the Finance Minister reaffirmed their commitment to ongoing negotiations until a revised agreement consistent with IMF debt sustainability targets is achieved.
“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.”
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
Source: Ghanaweb