Ghana’s Parliament has given unanimous approval to a $2.8 billion debt restructuring agreement with 25 creditor nations, including China, France, the United States, Germany, and the United Kingdom.
The agreement clears a critical hurdle for continued disbursements under Ghana’s $3 billion International Monetary Fund bailout, a programme designed to help the country navigate its worst economic crisis in decades.
The West African nation, the world’s second-largest cocoa producer, defaulted on most of its external debt in December 2022.
The debt relief deal follows Ghana’s January 2025 signing of a Memorandum of Understanding with the Official Creditor Committee, marking a key step in its efforts to regain economic stability.
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According to a parliamentary report seen by Reuters, the restructuring provides $2.8 billion in debt service relief during the IMF-supported programme period from 2023 to 2026.
The terms include rescheduling and capitalising debt service payments that were originally due between 20 December 2022 and 31 December 2026.
These payments will now be pushed forward, with repayment scheduled between 2039 and 2043, extending the timeline by more than 15 years.
Interest rates agreed with creditors range from 1% to 3%, based on the original contract terms.
These rates are well below current market levels, offering the government important fiscal breathing room.
In backing the deal, Parliament underscored its importance to economic stability.
The report noted, “The Committee observed that the debt restructuring was essential to support the government’s efforts in restoring and sustaining macroeconomic stability and ensuring long-term debt sustainability.”
Lawmakers highlighted that international cooperation remains crucial to Ghana’s recovery. The IMF approved Ghana’s $3 billion loan programme in May 2023.
Since then, the package has supported efforts to stabilise the cedi, ease inflation, and restore investor confidence, progress that contributed to a Fitch Ratings credit upgrade.
While the official creditor agreement represents a major achievement, Ghana is still negotiating with commercial creditors to finalise its broader debt restructuring plan and meet the remaining IMF benchmarks.
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Image Credit: Natural Resource Governance Institute
