All member states of the G20 group of economic powers seem to buy into the idea of ​​restructuring Ghana’s debt, in addition to the Paris Club, a group of officials from the main creditor countries, which took the lead in setting up the creditor committee for the above. objective.
This step forward follows Ghana’s request for debt restructuring under the G20 General Framework, a framework established to help low-income countries. Ghana’s request for debt restructuring under the G20 Common Framework came last week, effectively making it the fourth country after Chad, Ethiopia and Zambia to do so.
This framework was created in 2020, after the global pandemic, and allows for a smooth process of coordinating creditor governments to restructure the debts of low-income countries.
An anonymous official of the Paris Club was quoted, “There is a commitment by the leader to form a committee of creditors, so it is a question of time. We understand that all G20 members are committed to debt treatment under the Common Framework.
The official also noted that the Paris Club hopes to assemble a committee in less than a month, despite the fact that previously it took several months to form a committee.
“We think that the process will be smoother and smoother based on previous cases,” The official said, after looking at the restructuring of Ghana’s debt seems to be far less complex than the case of Zambia.
Ghana’s recovery path, after a year of the worst economic crisis in 2 decades, last month looked quite promising.
It was recently reported that the country’s producer price index fell by 25.9% in December, following the revaluation of the country’s currency against the dollar in the same month.
Also in the same month, Ghana introduced a debt swap program that was hailed as intuitive, and soon after reached a staff-level agreement with the International Monetary Fund for $3bn in aid funds.