The rating agency, Fitch, has declared that the Paris Club and the Ghanaian government will agree on the debt treatment guidelines by the end of 2023.
On the other hand, it anticipates that by the middle of 2024, the government will have reached an equivalent agreement with the private creditors.
“We expect the OCC and authorities to agree on the debt treatment parameters by end-2023, before an agreement with private creditors on comparable terms is expected for mid-2024, paving the way for Ghana moving out of default,” the agency’s spokesperson vehemently channeled to Ghana360news.
Fitch stated in its thorough examination of Frontier Markets that the agreements with the two external creditors will allow Ghana to exit its default situation.
Zambia and its external creditors have came to an agreement that permits the restructuring of its external debt.
The UK-based rating agency stated that Zambia’s debt agreement provides encouragement for future Frontier Markets sovereign restructurings to proceed more quickly.
According to the International Monetary Fund, the financing from the restructuring of external debt must total $10.5 billion between 2023 and 2026.
Following the formation of the Official Creditor Committee for foreign debt treatment, Ghana was able to receive approval from the International Monetary Fund Executive Board for a $3 billion Economic Credit Facility arrangement on May 17 2022.
The IMF is asking Ghana to reduce its external public sector debt by around 30% by the end of 2022 in order to restore debt sustainability.
Source: Ghana360news.com
