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A Milestone in Ghana’s Quest for Debt Relief

The country has reached a deal to restructure $5.4 billion of loans with its official creditors, the finance ministry said on Friday as it charts its way out of the worst economic crisis in a generation. The agreement with bilateral lenders including China and France was key to unlocking new International Monetary Fund (IMF) financing and will allow Ghana to access another $600 million under its $3 billion bailout program. IMF Managing Director Kristalina Georgieva welcomed the announcement in a statement, adding the agreement “clears the path for IMF Executive Board consideration” of the first review of Ghana’s program. The West African country, which defaulted on most of its overseas debt in December 2022 after debt servicing costs soared, restructured most of its local debt and also needs to reach a deal with private holders of about $13 billion in international bonds.