Ghana Secures $2.8 Billion Debt Relief Deal

Ghana’s Parliament has approved a $2.8 billion debt relief deal with 25 creditor nations, including economic heavyweights such as China, France, the United States, Germany, and the United Kingdom, marking a crucial step in the country’s ongoing efforts to recover from its most severe economic crisis in decades.

The approval, granted late Tuesday, is expected to unlock further disbursements under a $3 billion International Monetary Fund (IMF) bailout programme, which Ghana secured in May 2023. That bailout has since helped stabilise the nation’s economy, which had been reeling from inflation, currency depreciation, and debt distress. The IMF-backed deal also prompted a positive credit rating revision from Fitch.

“The terms of the debt treatment offer a debt service relief of $2.8 billion during the Fund-supported programme period (2023–2026),” a parliamentary report seen by Reuters confirmed. The debt restructuring applies to payments due between December 20, 2022, and December 31, 2026, which will now be capitalised and repaid between 2039 and 2043—giving Ghana over 15 years of breathing space on repayments.

Under the terms agreed with the Official Creditor Committee, interest rates on the restructured debt will range from 1% to 3%, depending on original contract terms. This arrangement provides the Ghanaian treasury with substantial savings, as the rates fall well below current market levels.

“The Committee noted that the debt restructuring was critical in supporting government to restore and sustain macroeconomic stability and debt sustainability,” the report concluded, with lawmakers unanimously recommending approval of the deal.

Ghana, the world’s second-largest cocoa producer, defaulted on most of its external debt in December 2022. Since then, it has been actively engaged in negotiations to restore economic order and win back investor confidence. The memorandum of understanding with bilateral creditors, signed in January 2024, reflects broad international support for Ghana’s reform agenda.

While the parliamentary approval is a key milestone, Ghana is still negotiating with commercial creditors to complete the full debt restructuring process. The outcome of those talks will be crucial in determining the country’s long-term economic recovery trajectory.

With this debt relief, the West African nation takes a significant step toward restoring macroeconomic stability, improving debt sustainability, and creating fiscal space for growth, especially in critical sectors like agriculture, manufacturing, and infrastructure.