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Draft MoU from creditors on debt treatment received – Dr Adams

 The government has officially received the draft Memorandum of Under­standing (MoU) from the Official Creditor Committee (OCC) for debt treatment under the Interna­tional Monetary Fund (IMF)-Sup­ported Post Covid-19 Programme for Economic Growth (PC-PEG.)

The Finance Minister, Dr Mohammed Amin Adam, who disclosed this in Accra on Friday when he presented an update on the economy, said the MOU was received on May 23, 2024.

He said the government, with support from its Financial and Legal Advisors, would review the MoU “to finalise and sign the agreement with the OCC as soon as possible”.

In December 2022, Ghana requested for debt treatment under the G20 Common Frame­work which was first adopted in 2020, as one of the most import­ant decisions by the G20, and endorsed by the Paris Club for 73 eligible developing countries, and currently four countries have requested for debt treatment, including Ghana.

On January 12, 2024, prior to the IMF Executive Board’s approval of the first review of the IMF-supported PC-PEG, Ghana received financing assurance upon reaching an agreement in principle with the OCC and that delivered significant debt relief for the country.

Mr Adam said the completion of the external debt restructuring would help “unlock funding” to complete some major road proj­ects which had been halted due to the debt treatment with the OCC.

The Finance Minister indicat­ed that the government was in constructive engagement with Eurobond holders and had “made significant and good progress with” them.

“We have held several rounds of negotiations on proposals and counterproposals on the Euro­bond Treatment. This led to a series of restrictive discussions for about three weeks, just before the IMF Spring meetings and it ended successfully on April 15, 2024, with very narrow differenc­es. Considerable progress is being made towards a constructive solu­tion that would be acceptable to all parties. It is for this reason that we are rather confident and more optimistic that we can continue to work together on solutions that would deliver an acceptable compromise for all stakeholders,” Dr Adam stated.

 BY KINGSLEY ASARE

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