External Debt Restructuring: World Bank welcomes agreement on key parameters for Ghana

The Official Creditors’ Committee established an agreement in principle on the major criteria of Ghana’s proposed debt restructuring under the G20 Common Framework, which the World Bank Group welcomes.

According to the statement, this agreement, which is compatible with the Joint World Bank-International Monetary Fund Debt Sustainability Framework, is a vital step in restoring debt sustainability in the country.

“This agreement will help unlock financial support by international financial institutions, including a $300 million budget support operation supported by IDA, which will be considered by the World Bank’s Board of Executive Directors next week.

“This will aid Ghana’s recovery by attracting investments and restoring a sustainable growth path,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa.

The Resilient Recovery Development Policy Operation is the first of three $900 million operations as part of the World Bank’s overall support for disaster response and resilience in Ghana.

The government plans to implement $4.3 billion in World Bank commitments through national and regional programs focusing on private sector development and jobs, inclusive service delivery, and sustainable resilient development.