Page 1 of 2
Kindly quote this number and date on all correspondence
My Ref. No. MOF/GA/PR/DSS.22/0019.
Your Ref. No. __________________________________
Date. 19TH DECEMBER, 2022
PRESS RELEASE
FOR: IMMEDIATE RELEASE
SUSPENSION OF PAYMENTS ON SELECTED EXTERNAL DEBTS OF THE GOVERNMENT
OF GHANA
Accra, Monday, 19th December 2022... Ghana is today faced with major economic and
financial crisis, and its attendant social challenges. In 2020 and 2021, the covid-19 pandemic
negatively impacted our fiscal and economic situation. Global risk aversion triggered large capital
outflows, a loss of external market access and rising domestic borrowing costs.
2. This year, 2022, the global economic shock induced by the Russian invasion of Ukraine has
further adversely affected our economy just when it was beginning to recover from the pandemic.
The combination of adverse external shocks has exposed Ghana to a surge in inflation, a large
exchange rate depreciation and stress on the financing of the budget. These factors taken together
have put the sustainability of our debt at risk.
3. To address these mounting challenges, we launched on Monday 5th December an invitation
to exchange our domestic debt. The details of this domestic debt exchange are set forth in an
Exchange Memorandum, available on https://mofep.gov.gh/news-and-events/debt-operations. This
domestic debt operation is part of a more comprehensive agenda to restore public debt sustainability.
Given the magnitude of the economic and social crisis that Ghana is confronted with, this domestic
debt operation will not be enough to close the large financing gaps that Ghana faces over the coming
years. The Government’s Debt Sustainability Analysis (DSA) has demonstrated that our public debt,
both external and domestic, is unsustainable.
4. We, therefore, formally requested IMF assistance in July 2022. A Staff-Level Agreement
(SLA) has subsequently been achieved and announced on 13th December on a financing program
aimed at restoring macroeconomic stability and debt sustainability, and preserving financial stability
while protecting the most vulnerable. This SLA milestone was achieved in record time. It is with this
same spirit that we, therefore, expect creditors to also respond in an expedited manner, to ensure
that the IMF-supported programme is adopted by the IMF Board as soon as possible in early 2023.
5. In the interim, additional emergency measures are 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.
6. That is why we are announcing today a suspension of all debt service payments under certain
categories of our external debt, pending an orderly restructuring of the affected obligations.
There was a problem loading this page.
Page 2 of 2
2 | Ministry of Finance: Professional, Ethical, Efficient, – Transforming Ghana Beyond Aid
7. 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 19th 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.
8. The Government stands ready to engage in discussions with all of its external creditors to
make Ghana’s debt sustainable through a fair, transparent and comprehensive debt restructuring
exercise in line with international best practices. The Ministry of Finance will hold an investor
presentation at a date to be announced at a later stage.
9. For any investor inquiry, please contact investors.ghana@lazard.com and
investorsghana@mofep.gov.gh.
*********
The Ministry of Finance
Finance Drive, Accra.
P. O. Box M40, Accra – Ghana
GA-144-2024
info@mofep.gov.gh
Tel: +233 302-747-197
Financial Advisor to the Republic of Ghana:
Lazard Frères
175 Boulevard Haussmann
75008, ParisEND
ISSUED BY THE PUBLIC RELATIONS UNIT
MINISTRY OF FINANCE
THE NEWS EDITOR