More than two dozen aid and campaign groups have called for international creditors to cancel a large portion of Ghana’s debts as it struggles to contend with an economic crisis. Ghana’s Consumer Inflation rose to a record 54 percent year-on-year in December, driven by rising fuel, utility and food costs.
International Reserves have dwindled to less than two months of import cover.
The groups, which all have operations in Ghana, said in an open letter on Tuesday, January 17, 2023, Signatories of the letter, which included Oxfam, Christian Aid, Caritas Ghana, Debt Justice and ActionAid, said the key challenge is to get private lenders to agree to a significant debt cancellation. Ghana is expected to miss a 41 million dollar interest payment due on a one-billion-dollar Eurobond.
They said the G20 can help by making it clear that Ghana will be politically and financially supported to remain in default on any creditor which does not accept the necessary debt restructuring.
Ghana launched a domestic debt swap plan at the start of December, days before clinching a staff-level agreement with the IMF for a 3bn dollar rescue package.
