Ghana nears finish line in external debt restructuring – GSDR

Ghana's external debt restructuring is on track, with 16 out of 25 bilateral agreements with official creditors finalized, according to the Global Sovereign Debt Roundtable (GSDR). The GSDR, which comprises debtor nations and official and private creditors, reported this news during the IMF–World Bank Annual Meetings in Bangkok.

The report stated that talks are still ongoing with the remaining non-bonded commercial creditors, currently accounting for less than 5% of the debt subject to restructuring. These agreements involve members of Ghana's Official Creditor Committee (OCC) and are a step forward in implementing the country's debt treatment plans. The GSDR, established in February 2023, aims to enhance understanding of debt sustainability and restructuring issues, as well as identify solutions to obstacles that hinder the restructuring process.

In December 2022, Ghana halted payments on certain external debts as part of its restructuring efforts and to gain support from the International Monetary Fund. The suspension included Eurobonds, commercial loans, and selected bilateral debts. The GSDR's latest assessment revealed that the process has made significant progress, with efforts now concentrating on concluding outstanding agreements and resolving claims involving the remaining commercial creditors.

The report also highlighted that similar restructuring cases are ongoing for Ethiopia, Ghana, Zambia under the Common Framework, and Sri Lanka and Suriname outside it.