France Becomes First Paris Club Member to Formalise Debt Relief Deal With Ghana

France Becomes First Paris Club Member to Formalise Debt Relief Deal With Ghana

France has become the first member of the Paris Club to formally sign a bilateral debt relief agreement with Ghana, in a move hailed by Finance Minister Dr Cassiel Ato Forson as a “milestone” in the country’s ongoing external debt restructuring programme.

The agreement, signed on Friday, July 25, 2025, comes on the back of parliamentary approval of the indicative terms outlined by the Official Creditor Committee (OCC), a key pre-condition for securing bilateral deals with creditor nations.

Speaking at the signing ceremony in Accra, Dr Forson expressed gratitude to the French government for its swift commitment, noting that the agreement signals a major breakthrough in Ghana’s efforts to restore debt sustainability following its default in 2022.

“Today is a milestone… the most significant one, which will pave the way for others to also emulate the steps taken by France in signing this bilateral agreement,” he stated.

“We expect to complete the process as soon as possible so that Ghana will breathe again,” he added.

The signing ceremony was attended by French Ambassador to Ghana, Jules Armand Aniambossou; Secretary-General of the Paris Club and Co-Chair of the OCC, William Roos; senior officials of Ghana’s Finance Ministry; and representatives of the French government and creditor community.

Dr Forson reiterated Ghana’s recent macroeconomic progress, pointing to headline inflation dropping from a peak of 54% in December 2022 to 13.7% as of June 2025, as a signal of recovery and a basis for increased creditor confidence.

“We have gone through turbulent times, but we can see that hope is in sight. The economy is recovering,” he asserted.

French Ambassador Aniambossou described the agreement as an act of solidarity and an affirmation of the strong bilateral relations between Accra and Paris.

“When your friend or family is facing difficulties, you have to show that you are there for them and take some key actions. This day is also crucial because it enables Ghana to continue its financial recovery,” he remarked.

For his part, William Roos called for enhanced coordination among bilateral creditors—including China and other G20 members—to sustain momentum on debt restructuring efforts.

“We have to learn to work together. We have to progressively build strong trust between France, China, and the G20 and Paris Club members,” he said.

The deal with France is expected to catalyse further bilateral agreements with other Paris Club members before the end of July, as Ghana moves to finalise debt treatment arrangements consistent with the Common Framework.

The agreement is a critical pillar under Ghana’s IMF-supported Post-COVID-19 Programme for Economic Growth (PC-PEG), aimed at achieving macroeconomic stability and restoring public debt sustainability.