The Government of Ghana has on Monday, December 19, announced it is suspending debt service payments on certain categories of external debt including Eurobonds, commercial loans and most bilateral debt. 

According to the government, this is aimed at bringing the country’s unsustainable debt level under control - a statement from the Ministry of Finance said. 

In the said release, the Ministry noted that debt payment suspension is “an interim emergency measure pending future agreements with all relevant creditors.”

However, this move will not affect debts contracted on or after December 19, 2022. 

“This suspension will not include the payments of our multilateral debt, new debts (whether multilateral or otherwise) contracted after 19th December 2022 or debts related to certain short term trade facilities.”

Meanwhile, the government has assured its external creditors that engagement on the move will be fair and transparent. 

“The Government stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable through a fair, transparent and comprehensive debt restructuring exercise in line with international best practices.

“The Ministry of Finance will hold an investor presentation at a date to be announced at a later stage,” the statement concluded.