Ghana has reached a major breakthrough in its external debt restructuring efforts after securing the backing of official creditors for the restructuring of a $750 million loan from the African Export-Import Bank (Afreximbank).
Sources familiar with the Paris Club of creditor nations told Reuters that the agreement between Ghana and Afreximbank is “welcome” from the Club’s perspective. Such an endorsement suggests that Afreximbank accepted concessions on the loan, a key requirement for creditor approval.
The Paris Club had earlier insisted that Ghana’s Afreximbank facility be restructured in line with the principle of “comparability of treatment.” This principle requires all creditors to receive similar restructuring terms, which may involve reductions in principal, extended repayment periods, lower interest rates, or a combination of these measures.
Ghana announced the agreement on Christmas Day, but has not disclosed the specific terms of the restructuring. Government officials have also declined to publicly comment on the Paris Club’s endorsement.
In response to inquiries from Reuters, Afreximbank referred to a previous statement in which it said that the issues surrounding the loan had been resolved “to the satisfaction of both parties.” However, the bank did not confirm whether it incurred any financial losses as part of the agreement.
The development removes one of the final major obstacles in Ghana’s debt restructuring process and strengthens the country’s efforts to restore macroeconomic stability under its broader economic recovery programme.
