Ghana has agreed a memorandum of understanding (MoU) with its bilateral creditors, including China and France, to restructure $5.4 billion of debt.
This agreement comes one-and-a-half years after the West African country defaulted.
The MoU paves the way for the executive board of the International Monetary Fund (IMF) to approve the disbursement of $360 million under Ghana’s $3 billion, three-year bailout program, which is expected next month.
When signed, the agreement would form the basis of a deal to restructure loans its official creditors, including China and France under the Paris Club of creditor, agreed in January, 2024.
Ghana was the second country in Africa to default on most of its $30 billion external debt during the pandemic as the exporter of gold, cocoa and oil battled to emerge from its worst economic crisis in a generation.
In April 2024, Ghana found common ground with some of its biggest bondholders, including Western asset managers and hedge funds as well as regional African banks.
