IMF encourages Ghana to sustain progress in debt restructuring efforts with Non-Eurobond creditors

The International Monetary Fund (IMF) Director for the African Department, Abebe Selassie, addressed Ghana’s ongoing debt restructuring process on Friday, October 25, emphasizing the country’s next steps in engaging non-eurobond commercial creditors to negotiate substantial portions of its debt.

This engagement is vital to Ghana’s external debt restructuring goals, to bring the debt-to-GDP ratio down to 55% by 2028,

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During the press briefing, Mr. Selassie acknowledged the progress achieved so far, commending Ghana’s recent restructuring efforts with both bilateral and Eurobond creditors, but underscored that the journey is far from over.

“The government needs to stay strong and make sure that it gets the best deal it can for the people of Ghana,” he stated, reflecting optimism that further agreements with non-eurobond commercial creditors would reinforce Ghana’s path toward economic recovery and stability.

The IMF official further noted that these ongoing debt restructuring measures align closely with Ghana’s economic revitalization strategy, focused on achieving sustainable debt levels to ease future financial pressures.

The goal is to create a stable financial outlook that will support both local and international investor confidence, promote economic growth, and open pathways for social development.

Ghana’s recent external debt restructuring achievements include a substantial $5 billion in debt cancellations and a $4.3 billion relief on debt servicing obligations. These efforts have collectively saved the nation approximately $12 billion in debt-related costs.

Ghana’s ability to complete such an extensive restructuring program in just nine months—well ahead of the typical two-year timeframe required for similar restructurings elsewhere—is being heralded as a notable success. The accelerated restructuring timeline not only demonstrates Ghana’s commitment to economic reform but also signals its resolve to address both immediate and long-term financial stability.

As Ghana moves forward with further debt renegotiations, the IMF remains a key supporter, providing technical and policy guidance to ensure the nation secures terms that will foster sustainable economic growth and reduce the fiscal burdens on future generations.

Mr. Selassie’s remarks highlight the importance of a steadfast approach in these remaining negotiations, positioning Ghana’s ongoing debt restructuring as a critical component of its broader economic recovery plan.