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Ghana is on the verge of completing its debt restructuring programme, with only $2.7 billion in commercial creditor debt remaining.
In a recent interview on the IMF Today programme during the Annual IMF/World Bank meetings in Washington, DC, Dr Amin Adam said, “If Ghana can conclude this outstanding commercial creditor debt, then we can say that the entire process has been completed.”
Ghana’s restructuring initiatives have so far resulted in substantial financial relief, with $12 billion in savings accrued from various debts, including bilateral debts and Eurobonds. Dr Amin Adam highlighted that these efforts have brought “an outright debt cancellation of about $5 billion and additional debt service relief of $4.3 billion.”
The Finance Minister further detailed the benefits: “Between the bilateral creditors and the Eurobond, we are talking about a savings of $12 billion,” he said, describing the restructuring as highly successful.
Dr. Amin Adam attributed the success of the debt exchange programme to a simplified process and the principle of “burden sharing,” emphasizing that “we had to demonstrate to external creditors that our domestic investors were also prepared to sacrifice.”
This, coupled with a commitment to transparency, helped foster trust among investors.
To maintain investor confidence, the government has committed to fiscal discipline, with plans to publish quarterly and half-yearly debt reports for transparency.
“We are also working to impose a debt limit on government borrowing, as well as establish a fiscal council to monitor government finances and borrowings,” Dr Amin Adam noted.
SOURCE: DAILY MAIL GH
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