Ghana Reaches Debt Restructuring Milestone

Ghana's finance ministry has formalized a debt restructuring deal through a Memorandum of Understanding with its Official Creditor Committee. This move is crucial for the approval of the IMF's second review of a $3 billion loan package, potentially unlocking further financial aid from the World Bank.

Ghana's finance ministry said on Wednesday that it had reached a Memorandum of Understanding with its Official Creditor Committee to formalise a debt restructuring deal agreed in January.

The memorandum paves the way for the approval by the International Monetary Fund's executive board of the second review of a $3 billion loan package and the release of the next tranche of $360 million. "The IMF Board's approval should also trigger more financial assistance from our development partners, particularly the World Bank," the finance ministry said in a statement.

The agreement will also bolster ongoing restructuring discussions with private creditors, it added. Embattled Ghana is restructuring its debts to help it emerge from its worst economic crisis in a generation.