International Monetary Fund MD Kristalina Georgieva on Sunday confirmed that Ghana has sought debt treatment under the Common Framework platform supported by the Group of 20 (G20) major economies. Ghana’s debt restructuring under the Common Framework aims to include non-Paris club members, such as China, in debt relief talks. China is Ghana’s biggest bilateral creditor with $1.7bn of debt, while the country owes $1.9bn to Paris club members, according to data from the International Institute of Finance (IIF). Reuters reported first earlier this month that Ghana was seeking debt treatment under the G20 programme. Ghana, which secured a $3bn staff-level agreement with the IMF in mid-December, has been hesitating on this request due to the long delays faced by other countries using the process. The Common Framework, designed to allow for speedy debt restructuring, has been widely criticised for its glacial progress. Chad, Ethiopia and Zambia signed up in early 2021. While Chad secured a deal with creditors in November, Zambia is still locked in talks. Ethiopia’s progress was held up by civil war.
SOURCE: BUSINESS DAY LIVE