Ghana is in talks with 60 international banks to restructure $2.7 billion in commercial loans, according to Finance Minister Cassiel Ato Forson. This marks the final phase of debt rework under the country’s $3 billion International Monetary Fund (IMF) program, aimed at stabilizing its economy. Ghana turned to the IMF in 2022 after soaring debt left it unable to meet its financial obligations, leading to a default. Since then, the nation has restructured $13 billion in eurobonds, $5.1 billion in bilateral loans, and $13.3 billion in domestic debt, Bloomberg reported.
Forson, recently appointed by new President John Mahama, has pledged to implement spending cuts to prevent a recurrence of the debt crisis that plagued former President Nana Akufo-Addo’s administration. Mahama, who won the December election with 56.6% of the vote—the largest margin since 2000—has vowed to address public discontent over high living costs and fiscal mismanagement. His victory over former Vice President Mahamudu Bawumia reflected widespread frustration with the previous government’s economic policies.
The restructuring efforts are part of broader measures to restore fiscal stability and rebuild investor confidence in Ghana’s economy.
