"Ghana: World Bank Board to consider $300m budgetary support next week over Ghana’s debt agreement with the OCC"

" Ghana: World Bank Board to consider $300m budgetary support next week over Ghana's debt agreement with the OCC \r\n\r\nThe World Bank has welcomed the agreement in principle on the key parameters of the proposed debt restructuring for Ghana reached by the Official Creditors\u2019 Committee under the G20 Common Framework.\r\n\r\nAccording to the Bretton Wood Institution, the agreement is consistent with the Joint WB-IMF Debt Sustainability Framework and represents a critical milestone toward restoring debt sustainability in this country. \r\n\r\nOusmane Diagana, the World Bank Vice President for Western and Central Africa, has stated that the agreement will unlock some $300m in budgetary support from the World Bank's International Development Association (IDA) for the Government of Ghana.\r\n\r\n\u201cThis agreement will help unlock financial support by international financial institutions, including a $300 million budget support operation supported by IDA, which will be considered by the World Bank\u2019s Board of Executive Directors next week. This will help Ghana in its recovery, attracting investments and restoring a sustainable growth path,\u201d he remarked. \r\n\r\nAccording to Mr Diagana, the $300m budgetary support falls under the Resilient Recovery Development Policy Operation which is the first in a series of three operations totaling $900 million and part of a broad World Bank engagement in support of crisis response and resilience in Ghana.\r\n\r\nOverall, the country implements $4.3 billion in commitments from the World Bank through national and regional projects focused on private sector development and jobs, inclusive service delivery, and sustainable resilient development.\r\n\r\nGhana won a moratorium with official creditors on debt payments through May 2026, and expects to reach a deal with eurobond investors to revamp $13 billion debt by the end of March.\r\n\r\nFinance Minister Ken Ofori-Atta said the payments owed on $5.4 billion of bilateral obligations would be repaid in two tranches in 16 and 17 years\u2019 time, under the terms of the deal struck in principle last week.\r\n\r\nSpeaking from the World Economic Forum in Davos, he said the agreement with official creditors also \u201cbuilds momentum and confidence\u201d to revamp the eurobond debt.\r\n\r\n\u201cThere\u2019s a sense globally that Ghana has done its part and therefore talking to the eurobond investors, there\u2019s a sense of urgency,\u201d he said.\r\n\r\nGhana\u2019s pact with official creditors, announced Jan. 12, means debt payments from 2023 would be repaid in 2039 and 2040, while debt service due in 2024 would be repaid in 2040 and 2041.\r\n\r\nThe forbearance will run for the duration of Ghana\u2019s program with the International Monetary Fund that ends in May 2026."

"Ghana: World Bank Board to consider $300m budgetary support next week over Ghana’s debt agreement with the OCC"

Ghana restructuring snag just a hiccup, Finance Minister Amin Adam saysAMP

Ghana’s Failed Debt Deal: Objections that led to rejection of deal by international bondholdersAMP

GHS 5.5bn Bond Programme: Daakye Trust Plc announces buyback of outstanding bondsAMP