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Ghana News

Ghana’s official creditors to meet on January 8 to discuss debt restructuring terms of US$5.4 billion loan

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According to Reuters, Ghana’s official creditors will meet on Monday, January 8, to consider restructuring the country’s US$5.4 billion in debts.

The conference is critical for Ghana to get the next tranche of funds from the International Monetary Fund (IMF).

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The People’s Republic of China and France jointly head the Official Creditor Committee (OCC).

Together, the two nations own around 25% of Ghana’s $20 billion external debt scheduled for restructuring.

According to Reuters, the conference is anticipated to focus on reaching an agreement on a ‘cut-off date’ beyond which fresh loans from bilateral creditors would not be modified.

Defining this date has proven to be a stumbling issue for Ghana in its debt restructuring.

The precise date to be set as the cut-off date has divided Ghana’s external creditors, with one group advocating for December 31, 2022, as the cut-off date, citing Ghana’s default earlier that month, while another group is pushing for March 24, 2020, the date when the Group of 20 introduced the debt service suspension initiative (DSSI) to aid the world’s poorest countries during the COVID crisis.

“Ghana is still about cut-off date, but creditors haven’t agreed yet,” a source from the Reuters said. “If the cut-off date is agreed, that means an agreement on debt restructuring is close.”

According to two sources, the Paris Club, comprised of key creditor nations (excluding China), will meet on Friday in preparation for the OCC meeting on January 8.

 

 

 

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