Ghana’s parliament has approved a $2.8 billion debt restructuring agreement as the country continues efforts to recover from its most severe economic crisis in decades.
The West African nation reached a memorandum of understanding in January with 25 official creditors including China and France after defaulting on most of its external debt in late 2022.
The restructuring aims to reduce Ghana’s debt-to-GDP ratio to 55 percent by 2026 and bring down its debt-service-to-revenue ratio to under 18 percent by 2028, according to government targets. Officials say the move is expected to relieve fiscal pressure and support long-term economic recovery.
Finance Minister Cassiel Ato Forson confirmed that discussions with private creditors who are still owed approximately $2.7 billion are ongoing as the government seeks to complete the full restructuring process.
A major producer of cocoa and gold, Ghana defaulted on much of its $30 billion international debt following multiple economic shocks, including the COVID-19 pandemic, the war in Ukraine, and a surge in global interest rates.
