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The Ghanaian government has achieved a significant milestone in its quest for economic recovery, having successfully negotiated an agreement with its Official Creditors to restore the nation’s debt sustainability.
This breakthrough aligns Ghana with the stringent targets set by the International Monetary Fund (IMF) programme.
In a momentous step forward, the government is now poised to secure the second tranche of the IMF bailout, following the successful acquisition of the first tranche in 2023. This progression is a testament to Ghana’s commitment to its economic reform and stabilization efforts.
The journey towards this achievement commenced in 2023 with the implementation of the Domestic Debt Exchange Programme (DDEP). This strategic move was instrumental in steering Ghana back onto the path of long-term debt sustainability.
The Ministry of Finance, in a statement dated January 12, 2024, elaborated that this accord was reached under the auspices of the G20 Common Framework. This framework advocates for a comprehensive debt treatment extending beyond the Debt Service Suspension Initiative.
The government has expressed its confidence in the agreed debt treatment, which is set to provide significant flow relief during the programme period. This relief is expected to free up financial resources, channeling them towards critical public investments – a vital component for Ghana’s ongoing economic rejuvenation.