Gov’t signs 7th bilateral debt deal     

 By Joshua Worlasi AMLANU

The country has concluded its seventh bilateral debt restructuring agreement after signing a deal with the Czech Republic, marking another step in government’s effort to complete its external debt overhaul under the IMF programme.

The agreement was signed in Accra by Finance Minister Dr. Cassiel Ato Forson and René Jakl, Director-Claims and Recoveries Department at the Export Guarantee and Insurance Corporation, who represented the Czech Republic.

Dr. Forson said this deal deepens the two countries’ long-standing relationship and supports Ghana’s progress toward restoring debt sustainability. He noted that the restructuring process is moving according to plan, with bilateral creditors advancing their individual agreements after their joint memorandum with Ghana became effective in October 2025.

“We appreciate the Czech government’s cooperation and the continued partnership between our two countries,” he said.

Mr. Jakl said the agreement opens a door to further cooperation. “This marks the start of a new chapter and creates room for future engagements,” he said, adding that the Czech Republic views Ghana as a key partner in its African economic engagements.

The deal adds to similar agreements already signed with China, Finland, France, Germany, Spain and the United Kingdom. Government expects the remaining bilateral creditors to complete their agreements by December 2025, according to the 2026 budget presented to parliament.

Ghana’s external restructuring is a key component of its IMF-backed recovery plan, which aims to lower debt-service costs and reduce refinancing risks. The country had restructured about 93.5% of its total public debt by the end of 2024 – including US$20.4billion in domestic notes and bonds, US$13.1billion of Eurobonds and            US$5.2billion owed to bilateral lenders. The remaining commercial debt is still under negotiation, with several major lenders already reaching agreements in principle.

The Official Creditor Committee has confirmed that these agreements meet the comparability of treatment requirement, clearing the way for broader participation from other creditors. Government officials say the commercial restructuring must be completed to fully stabilise the country’s financing outlook and support growth.

Parliament’s approval of indicative terms in June 2025 and the first bilateral signing with France the following month signalled what the Finance Ministry described as renewed confidence in Ghana’s debt management framework. The authorities say their strategy remains anchored on an objective of meeting the country’s financing needs at lowest possible cost and most prudent level of risk.

The restructuring is expected to ease fiscal pressures and create space for priority spending. Lower interest costs, a more balanced borrowing mix and deeper domestic market participation are central goals of the plan, according to the budget document.

Government has committed to improving transparency in its debt operations as part of ongoing reforms supported by the IMF.

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