We have debt relief of $2.8 billion and will not service debt till 2026 – Finance Minister

Finance Minister, Dr. Mohammed Amin Adam has revealed that following Government’s completion of the debt restructuring, the country has been able to relief its debt up to the tune of $2.8 billion.

The Minister disclosed this while presenting the mid-year budget review to Parliament on Tuesday, July 23, 2024.

According to Dr. Amin Adam, this debt relief will enable Ghana not pay back debt obligations to official creditors till 2026.

“We have completed the Debt Restructuring programme with the Official Creditor Committee (OCC), covering US$5.1 billion dollars resulting in approximately 8 billion US Dollars of debt relief. This means that we will not service our debt to our official creditors from 2023 to 2026,” the Minister said.

Additionally, the Minister stated that government has also received a total of about US$1.6 billion as credit facility from the International Monetary Fund (IMF).

Dr. Amin Adam noted that negotiations with Eurobond holders have been concluded which has secured some $13.1 billion for the country.

This, the Minister said will “lead to a cancellation of 4.7 billion US Dollars of our debt and provide debt service relief of 4.4 billion US Dollars between 2023 and 2026.”

He further indicated that the country will save some “US$6.6 US Billion over the lifetime of the Purchasing Power Agreements (PPAs)” because negotiations have been concluded with five of the seven Independent Power Producers.