Ghana signed a €87.7 million debt relief agreement with France on Friday under the Official Creditor Committee (OCC) arrangement, marking the first bilateral creditor to do so after two years of negotiations.
Dr. Cassiel Ato Baah Forson, Finance Minister, signed on behalf of Ghana, while Mr. William Ross, Co-Chair of the OCC, signed on behalf of the Creditor (France), in an agreement that provides 100% debt service, a reduction in interest, and an extension of maturity on the country’s debt.
Dr. Forson expressed the country’s appreciation to France, the Paris Club, and the Official Creditors Committee, legal and financial advisors, for the collaborative work, which had culminated in the signing of the first bilateral agreement.
“It is often said that it is only in difficult times that you see your true friends, and we can say without mincing words that the French Republic came through for Ghana and Ghana is extremely grateful,” Dr. Ato Forson said.
He noted the improvements in the Ghanaian economy, indicating the government’s resolve to sustain the progress made, while drawing investments into key priority areas – healthcare, education, agriculture and infrastructure.
“Today is a milestone – in the sense that it has taken us some years to get here, but it’s the most significant one that will pave the way for others to this side,” he said, noting the country’s turbulent times and the current promising point for more investment.
“Inflation that was once at 54.1 per cent has now come down to 13.7 per cent. We are seeing growth bounded to about a five-year high.
“We are seeing particularly reserves the external position improving to about four months of import cover, and primary surplus is at 1.1 per cent of Gross Domestic Product (GDP),” the Minister recounted.
“We are determined to hold the line and sustain the progress we have made year to date, and we believe that in the coming days, Ghana will be able to see investment after the stability,” Dr. Ato Forson said, pledging the government’s commitment to a deepened mutually beneficial cooperation with France.
Thomas Nyarko Ampem, Deputy Finance Minister, stated that the agreement with France and the once ahead would provide clarity and certainty on the country’s debt sustainability, “telling a good story that Ghana is on track.”
Describing Ghana’s debt composition and treatment as complex, Mr. Ross said the professional and efficient engagement with multiple stakeholders built trust among the official bilateral and international creditors, leading to France signing the agreement.
“We have decided to reduce by 100 per cent as debt service, reduce interest and increase the maturity to give you space for investment, to also negotiate with other creditors and create a real partnership for other stakeholders to contribute to.
“If you look at what we have done for Ghana, it is shorter than what we did for Zambia, but we have continued to improve in the case of Ethiopia… you have been very impressive because you have many people and institutions to engage with,” Mr Ross said.
The French Ambassador to Ghana, Jules Armand Aniambossou, described the moment as emotional, reflecting on the long-difficult journey the two countries embarked on before reaching an agreement.
“When I came to this country more than two years ago, it was facing some difficulties. But when your friend is your family member, is facing difficulties, you have to showcase that you will not just say I am sorry, but to take some key actions.
“That is why the French government at a very high level decided to do. Because we are here today due to the political volunteers from both sides. France decided not to let down Ghana because of our historical relationship, the key role Ghana is playing in our region [Africa],” he stated.
This development forms part of a broader debt restructuring effort under the ongoing implementation of Ghana’s three-year US$3 billion loan-supported programme with the International Monetary Fund (IMF), with $2.3bn disbursements so far.
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