Bilateral creditors share draft MOU agreement on Ghana’s debt restructuring for consideration – Amin Adam

Minister of Finance Dr. Mohammed Amin Adam has revealed that the bilateral creditors, through the Official Creditors Committee, have shared the draft document on Ghana’s debt restructuring with members for their consideration.

The Finance Minister added that this could lead to an agreement on the Memorandum of Understanding MOU soon when this draft is shared, and they like it.

Dr. Mohammed Amin Adam commented: “The official creditors committee has shared the draft document with their members and once they share the document with us and we agree, we will have an agreement.”

The Finance Minister said this at the press conference in Washington DC, US, on the sidelines of the spring meetings of the IMF and the World Bank.

The Finance Minister added: “The IMF is not asking for a deal from the bilateral creditors before going to the board, but rather an agreement on the wording of the MOU and that will be sufficient for the IMF to go to the board.”

Dr. Amin added: “We are very optimistic that we can meet all the conditions necessary for the IMF to go to administration in June this year.”

Negotiations with Eurobond holders and commercial creditors

Regarding the negotiations with Eurobond and commercial creditors, the Minister of Finance noted that they have made good progress with these creditors and that an agreement will be reached soon.

He added: “Any deal we reach with these commercial creditors must be in line with Ghana’s Debt Sustainability Analysis and we are working hard on that.”

The minister noted that they are very optimistic that they will reach an agreement that will be in line with Ghana’s Debt Sustainability Analysis.

“We are working to narrow the gap when it comes to what we initially proposed to creditors,” the Finance Minister revealed at the press conference.

The finance minister also added that “we have given a discount of 33 percent, a coupon rate of 5 percent, and then another 6 percent, and if you subject this to the threshold, you are expected to reach 55 percent.

He said: “We must work hard to ensure that the new negotiations are in line with the debt sustainability analysis.”

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