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Ghana secures $2.8bn debt relief as official creditors sign MoU
Ghana has formally secured $2.8 billion in debt relief after all 25 members of its official creditor committee fully signed the Memorandum of Understanding (MOU) which was initially reached in principle under the G20 Common Framework for Debt Treatment.
This is expected to provide crucial fiscal breathing space as Ghana advances structural reforms under its $3 billion International Monetary Fund (IMF) programme.
He said, “The Government of the Republic of Ghana is pleased to announce that the Memorandum of Understanding (MoU) reached with its Official Creditor Committee (OCC) has been signed by all Participating Creditor Countries”, Finance Minister, Dr. Cassiel Ato Forson, told the media in Accra on Wednesday, January 29, 2025.”
“The signing of the MoU formalises the debt treatment agreed upon with Official Creditors and marks a crucial step towards Ghana restoring long-term debt sustainability. The agreement provides significant debt service relief during the Fund-supported programme period, allowing financial resources to be directed towards supporting and strengthening the economic recovery”, he added.
He disclosed that discussions surrounding the remaining 7% of the deal are ongoing. The outstanding 7% involves negotiations with about 60 international financial institutions.
However, a $2.7 billion debt arrangement with commercial creditors remains unresolved – leaving the government focused on securing a final agreement in the coming months.
“Ghana continues to engage in good faith with all commercial external creditors, striving to finalise restructuring agreements that respect Ghana’s need for debt relief and the comparability of treatment principle, the Minister added.
With the signing of the MOU by all members of Ghana’s official creditor committee, the country is nearing the completion of its external debt restructuring process.
Securing this final component is critical to restoring fiscal stability and achieving the goals outlined in Ghana’s $3 billion International Monetary Fund (IMF) programme.
The debt relief under the G20 Common Framework provides Ghana with much-needed fiscal space to implement reforms, stabilize the economy and rebuild investor confidence.
This progress is also a significant step toward addressing the country’s debt sustainability challenges and positioning it for long-term economic recovery.
Government officials remain optimistic that ongoing engagements with commercial creditors will yield favourable outcomes, allowing Ghana to finalise its comprehensive external debt restructuring plan.
Source: Citinewsroom.com
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Former NPP MP Gifty Klenam defects to NDC
Gifty Klenam, a two-time New Patriotic Party (NPP) Member of Parliament (MP) for the people of Lower West Akim in the Eastern Region, has defected to the National Democratic Congress.
The former Member of Parliament made her switch public on Thursday, January 30, 2025 after receiving her NDC membership card in the Anlo Constituency of the Volta Region.
According to her, the decision followed a thorough review of the party’s policies, adding that she believes that President John Dramani Mahama’s leadership will lead the country toward progress and prosperity.
In a statement, she explained her decision, citing ideological alignment and confidence in the NDC’s policy direction as primary factors.
“Upon consultation with my family, I decided to join the NDC because it aligns with my values and vision for mother Ghana,” she stated.
Klenam also expressed strong confidence in the NDC’s 2024 manifesto, describing it as the most promising blueprint for Ghana’s future development.
She expressed her commitment to working closely with the NDC’s grassroots, empowering local communities, and creating opportunities to prevent the mass migration of Ghanaian youth seeking better prospects abroad.
Gifty Klenam, served as a Member of Parliament during the Fourth and Fifth Parliaments of the Fourth Republic, later held the position of Chief Executive Officer of the Ghana Export Promotion Centre (GEPC) under the Akufo-Addo-Bawumia administration.
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Currently, Ghana’s retirement age is set at 60 years.
Dr. Pelpuo who faced Parliament’s Appointments Committee on January 30, emphasized that any adjustments should be based on the country’s economic capacity and overall preparedness.
Against this backdrop, he backed the need for broad national consensus before making such a significant policy change, highlighting the importance of inclusive dialogue in shaping the future of Ghana’s workforce.
According to him,“There’s a lot of talk about increasing the retirement age now, some say up to 65 years, some say up to 70 years, but they are still strong why should they retire? I think it should come as a result of a harmonious decision. We will need to reconsider or consider whether it’s time for us to do it or not.”
“I will go along the many who will pose a view that there’s a need for a review, given our economy and our capacity to deal with it,”he concluded.
By Edem Mensah-Tsotorme
