Ghana in talks with 60 banks to rework $2.7 billion loans

Ghana has successfully finalised an agreement with its bilateral lenders to restructure its loans. The country has now initiated discussions with over 60 international banks to renegotiate $2.7 billion in debt.

These banks make up some of the country’s commercial creditors and the loan is the last batch of debt to be reworked in line with the country’s $3 billion IMF programme. Ghana began its debt restructuring exercise in December 2022. Since then, it has restructured approximately $31.4 billion in debt, including domestic bonds, Eurobonds, and bilateral obligations.

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The debt negotiations with the banks would mark the first challenge for Cassiel Ato Forson who just resumed as Ghana’s Finance Minister on January 22.

In 2024, the IMF disbursed about $960 million to the Ghanaian government as the second tranche of the $3 billion programme.

Since coming into power, the current Ghanaian administration has touted austerity measures, with Ato Forson noting to reporters,

“It shouldn’t always be about revenue, revenue, revenue. Why are we not paying attention to expenditure? We have an option to rationalize some of these expenditures.”