Gov’t starts discussions with bilateral creditors for debt treatment initiative – Ofori-Atta

The Minister indicated that Ghana has officially requested its bilateral creditors for a Debt Treatment initiative under the G20 Common framework and has started the process of negotiating in good faith with its commercial creditors.

Two preliminary discussions and exchange of information, he said, have started on a good footing with representative committees and advisors and assured that the members have indicated their commitment to establishing a Creditor Committee to assess Ghana’s request for debt treatment under the Common Framework by end of February 2023.

According to him, the significant milestone achieved by government in the DDEP will build momentum for the external restructuring programme expected to commence soon.

Mr. Ken Ofori-Atta disclosed these when he addressed Parliament on Thursday 16th February, 2023 on the Domestic Debt Exchange Programme.

He said, “We hope our commercial creditors will understand our desire to negotiate with our bilateral creditor’s softer terms than the ones we anticipate to propose to them, as a speedy process with the bilateral creditors is needed to pave the way for the discussions with private creditors.”

“Mr. Speaker, we have also initiated discussions with the representatives of our international bondholders and their Advisors and substantive discussions are due to start with them in the weeks to come.”

Government, he said, recognizes the continued importance of the DDEP in closing the financing gap and enabling the government to meet the debt sustainability target of 55% of debt-to-GDP in present value terms by 2028.

bilateral creditorsdebt treatmentOfori-Atta