By the end of April 2023, Ghana is expected to get financial assurances from the Official Creditor Committee.

This will pave way for the International Monetary Fund Board approval by May 2023.

According to investors’ presentation organised jointly by the Ministry of Finance and the Bank of Ghana, the government said it expects a Memorandum of Understanding with its Official Creditors by June or July 2023.

In April 2023, the government expects completion of Comprehensive Debt Exchange Operations.

Also, the government expects the start of the negotiations with commercial creditors in the view of reaching an agreement in principle on a term sheet for the restructuring of Eurobonds.

Finance Minister, Ken Ofori-Atta, said the restructuring of the external debt is necessary to restore debt sustainability and ensure the full financing of the programme

Two-thirds of $30.5bn external debt to be restructured

Meanwhile, two thirds of the $30.5 billion external debt are expected to be included in the External Debt Restructuring perimeter.

Multilateral Development Institutions held $8.8 billion of Ghana’s total debt stock as of the end of 2022.

Non-Resident investors also held $1.6 billion of the country’s debt December ending 2022.

The aim of the external debt restructuring exercise is to reach the International Monetary Fund/ World Bank Lower Income Country (LIC) Debt Sustainability Framework (DSF) targets.

In 2022, the government was in breach of three out of the five IMF/World Bank LIC DSF indicators.