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Economic crisis: Gov’t suspends payment on selected external debts

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The Ministry of Finance on Monday December 19 announced the suspension of payment on selected external debts including payment on Ghana’s Eurobonds, commercial term loans and on most of government’s bilateral debt to save the economy.

A statement issued by the ministry said the “interim” decision is part of “additional emergency measures necessary to prevent a further deterioration in the economic, financial, and social situation in Ghana.”

“As it stands, our financial resources, including the Bank of Ghana’s international reserves, are limited and need to be preserved at this critical juncture,” the statement said.

Finance Minister Ken Ofori-Atta on Monday December 5 launched the debt exchange programme in line with the government’s quest to restructure debt and put the economy back on track.

External debt details

“This suspension will include the payments on: our Eurobonds; our commercial term loans; and on most of our bilateral debt. This suspension will not include the payments of our multilateral debt, new debts (whether multilateral or otherwise) contracted after 19 December 2022 or debts related to certain short term trade facilities.

“We are also evaluating certain specific debts related to projects with the highest socio-economic impact for Ghana which may have to be excluded. This suspension is an interim emergency measure pending future agreements with all relevant creditors,” the MoF statement said.

Below is the full statement:

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