The Government of Ghana has announced it is suspending debt service payments on certain categories of external debt including Eurobonds, commercial loans, and most bilateral debt.
According to a statement from the Ministry of Finance issued on Monday, December 19, 2022, the government, through this arrangement is aimed at bringing the country’s unsustainable debt level under control.
A portion of the statement read: the Ministry noted that debt payment suspension is “an interim emergency measure pending future agreements with all relevant creditors.
Excerpts of the statement from the Finance Ministry, however, noted the move will not affect debts contracted on or after December 19, 2022.
“This suspension will not include the payments of our multilateral debt, new debts (whether multilateral or otherwise) contracted after 19th December 2022, or debts related to certain short-term trade facilities.”
Meanwhile, the government has assured its external creditors that engagement on the move will be fair and transparent.
“The Government stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable through a fair, transparent, and comprehensive debt restructuring exercise in line with international best practices.
“The Ministry of Finance will hold an investor presentation at a date to be announced at a later stage,” the statement concluded.