Ghana continues to restructure its debt to meet IMF requirements

Ghana continues to restructure its debt to meet IMF requirements

The West African country has renegotiated the equivalent of $4 billion of its domestic debt. An additional step to unlock a new level of payment from the International Monetary Fund by the end of the year.

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Ghana, one of the most indebted countries on the African continent, declared itself in default at the end of last year.

Accra found itself forced to knock again on the door of the IMF, which agreed to lend it 3 billion dollars over three years.

The first payment, 600 million, took place in May this year. A new payment of 600 million dollars must intervene by the end of the year.

In exchange for which Ghana had to undertake austerity measures, such as the increase in VAT or the freezing of hiring in the public service. The country must also restructure its external debt, but also domestic.

On Tuesday, Ghana thus renegotiated the equivalent of 4 billion dollars of its internal debt held by pension funds. This operation thus closes a crucial stage, that of the restructuring of its domestic debt.

At the end of last year, the country’s public debt was $63 billion, equivalent to 105% of GDP. Ghana’s goal is to bring it down to 55% of GDP by 2028.

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