Ghana has taken a step closer to releasing the $360m 3rd tranche disbursement under the ongoing IMF supported Post Covid-19 for Economic Growth (PC-PEG) programme after it reached an Memorandum of Understanding (MOU) with its Official Creditor Committee (OCC).

Ghana and the International Monetary Fund Mission in April reached Staff Level Agreement following the second review of the ongoing IMF programme but the Fund had indicated the Executive Board’s approval was hinged on further progress made in the country’s external debt restructuring negotiations.

Ghana reached on January 12, 2024 an agreement in principle with the Official Creditor Committee (OCC) under the G20 Common Framework on a debt treatment consistent with program parameters and the objective of restoring the country’s debt sustainability over the medium term which was is in line with the financing assurances provided in May 2023 and subject to finalization of internal procedures by some OCC members. But the IMF had also warned the alternative restructuring scenario based on the treatment agreed with the OCC, Ghana would remain in debt distress due to arrears to private creditors.

In a press release announcing the MOU, the finance ministry says the agreement is consistent with the debt treatment agreed upon in January 2024.

The release adds each Official Creditor is expected to follow its internal procedures to sign the MOU.

Below is the full press release from Ghana’s Ministry of Finance