Audio By Carbonatix
Ghana has received a draft term sheet on debt relief from its official creditors that is sufficient for the International Monetary Fund to disburse $600 million to the West African nation, Finance Minister, Ken Ofori-Atta said.
The term sheet from the Paris Club Group of creditors and new ones including China comes after months of negotiations to restructure as much as $5.4 billion of bilateral debt. The IMF board is expected to meet in a week.
“We are reviewing the draft term sheet,” Ofori-Atta said in an interview in the capital, Accra, declining to provide details in the draft accord.
“We need to scrutinize every clause but in terms of the broad framework, all parties are in agreement so it’s kind of a clearance to the fund. I’m hoping by tomorrow we would have finished so that whatever needs to be done will be sent to the fund,” he said.
Ghana started restructuring most of its public debt in December 2022 to qualify for a $3 billion extended credit facility program with the IMF. The country received an upfront disbursement of $600 million when it agreed to the program in May. Further releases, however, depend on meeting debt-rework and other performance targets.
Public debt — excluding loans to state-owned enterprises — eased to 66.4% of gross domestic product at the end of September, helped by the completion of a domestic debt reorganization. Those investors mainly suffered interest-rate cuts when they swapped about 126 billion cedis ($10.5 billion) of local debt last year.
A memorandum of understanding with the bilateral lenders could also unlock $550 million of additional funding from the World Bank by the end of February, Ofori-Atta said last week.
Latest Stories
-
Kenya Airways posts $138m pre-tax loss in 2025
14 minutes -
Social media bans and digital curfews to be trialled on UK teenagers
24 minutes -
Premier League great Salah will leave lifetime of memories
33 minutes -
Libya’s El Feel oilfield in shutdown since Thursday, engineers say
45 minutes -
Oil traders bet millions minutes before Trump’s Iran talks post
2 hours -
Fortnite-maker Epic Games lays off 1,000 more staff
2 hours -
Philippines declares energy emergency over Iran conflict
3 hours -
China dials back on fuel price hikes to ‘reduce burden’ on drivers
3 hours -
Elon Musk’s Starlink blocked from operating in Namibia
3 hours -
Middle East shock gives Dangote Refinery leverage as cheap imports dry up
3 hours -
Kenya Airways says Iran war has led to demand hike for its flights
4 hours -
Benin presidential candidate vows new police forces to fight jihadists
4 hours -
Kwame Dadzie: Did Stonebwoy’s ‘Jejereje’ really give NDC “significant” electoral impact?
4 hours -
Oil at $150 will trigger global recession, says boss of financial giant BlackRock
4 hours -
Facebook offering TikTok and YouTube creators $3,000 to post content
4 hours
