Ghana is preparing to request debt relief through the G20 Common Framework program and has sought assurances that the negotiations can be accelerated before proceeding.
The crisis-stricken country, which secured a $3 billion staff-level agreement with the International Monetary Fund (IMF) in mid-December, has been hesitant due to the lengthy delays experienced by other countries, including Ethiopia, using the process.
Ghana has halted payments on the majority of its external debt, effectively defaulting as the country struggles to close its massive balance of payments deficit. Its finance ministry announced two weeks ago that it will not service debts such as Eurobonds, commercial loans, and most bilateral loans, referring to the decision as a "interim emergency measure," while some bondholders criticized the lack of clarity.
Ghana's public debt was $47.7 billion in September 2022, of which about 28.4 billion was external, according to the Institute of International Finance. Of that, $1.9 billion was held by Paris Club countries and $1.7 billion by China.
