19.2 C
London
Saturday, May 25, 2024

Ghana nears agreement on debt restructuring with bilateral creditors

Finance Minister Dr Mohammed Amin Adam

Finance Minister Dr Mohammed Amin Adam has revealed that the bilateral creditors through the Official Creditor Committee have shared the draft document on Ghana’s debt restructuring with members for consideration.

The Finance Minister added that this could lead to an agreement on the Memorandum of Understanding MOU being reached soon when this draft is shared and they are okay with it.

Dr Mohammed Amin Adam noted, “The Official Creditor Committee has shared the draft document with their members and as soon as they share the document with us and we are okay with that, then we have an agreement.”

The Finance Minister said this at the press conference in Washington DC USA on the sidelines of the IMF/World Bank Spring Meetings.

The Finance Minister added that “The IMF is not asking for a deal from the Bilateral Creditors before it goes to the board, but rather an agreement on the wording of the MOU and that will be sufficient for the IMF to go to its board.”

Dr Amin added, “We are very optimistic that we can meet all the conditions needed for IMF to go to the board in June this year.”

Negotiations with Eurobond holders and Commercial Creditors

On the negotiations with Eurobond and commercial creditors, the Minister of Finance noted that they have made good progress with these creditors and a deal will be reached soon.

He added, “Any deal that we reach with these commercial creditors should be in line with Ghana’s Debt Sustainability Analysis and we are working hard on that.”

The Minister noted that they are very optimistic that they will reach an agreement that will be in line with Ghana’s Debt Sustainability Analysis.

“We are working to narrow the gap when it comes to what we initially proposed to the creditors” the Finance minister revealed at the press conference.

The Finance Minister also added that “we have provided 33 per cent discount, coupon rate of 5 per cent, and we have 6 per cent following that, and if you subject this to the threshold, you are supposed to achieve 55 per cent

He said, “We need to work hard to ensure that the fresh negotiations fall in line with the debt sustainability analysis.”

MORE:

Latest news
Related news