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Finance Minister Ken Ofori-Atta has announced that Ghana will re-engage with its international bondholders starting next week, building on the positive outcome of the recent restructuring of $5.4 billion in official creditor debt. Ofori-Atta revealed plans to continue discussions after meeting with holders of the country’s outstanding Eurobonds totaling around $13 billion in Marrakech last October.
In an interview during the World Economic Forum (WEF) annual meeting, Ofori-Atta disclosed that officials would also travel to China on January 23. China and France jointly chair Ghana’s Official Creditor Committee, and their involvement played a crucial role in reaching an agreement, unlocking additional funding from a $3 billion International Monetary Fund (IMF) rescue loan.
Ghana aims to restructure $20 billion of external debt, which stood at approximately $30 billion at the close of 2022, with a significant portion of local debt already restructured. Despite acknowledging the challenges of the restructuring negotiations last year, Ofori-Atta emphasized the country’s positive momentum.
The IMF board is set to meet on Friday to decide on a $600 million disbursement from Ghana’s bailout program, expected to be a formality. Approval would pave the way for funding from other multilateral lenders. The World Bank is also anticipated to decide on $550 million in much-needed funding on January 25.
Ghana is navigating its debt restructuring through the Common Framework, established by G20 countries during the COVID-19 pandemic. Though criticized for its slow results, Ofori-Atta noted improvements in Ghana’s macroeconomic situation in 2022, citing increased revenue and a decline in inflation. December’s consumer inflation slowed to 23.2% year-on-year, a significant drop from the default-triggering levels of over 50%.
Additionally, Ofori-Atta highlighted the country’s economic growth, surpassing the IMF’s projected rate at 3%, more than double the estimated 1.2%.
