JUST IN: Ghana Announces Suspension On All External Debt Payments

The Government of Ghana has today announced the suspension of all debt service payments under certain categories of its external debt, pending an orderly restructuring of the affected obligations.

According to government, the suspension will include the payments on Eurobonds commercial term loans; and on most of our bilateral debt.

In a statement signed by the Ministry of Finance, it said "This suspension will not include the payments of our multilateral debt, new debts (whether multilateral or otherwise) contracted after 19th December 2022 or debts related to certain short term trade facilities"

"We are also evaluating certain specific debts related to projects with the highest socio-economic impact for Ghana which may have to be excluded. This suspension is an interim emergency measure pending future agreements with all relevant creditors"

However, Government says it stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable through a fair, transparent and comprehensive debt restructuring exercise in line with international best practices.

The Ministry of Finance added that it will hold an investor presentation at a date to be announced at a later stage.

"Ghana is today faced with major economic and financial crisis, and its attendant social challenges. In 2020 and 2021, the covid-19 pandemic negatively impacted our fiscal and economic situation. Global risk aversion triggered large capital outflows, a loss of external market access and rising domestic borrowing costs"

Below is a copy of the release:

Story by: Joshua Kwabena Smith