Government has announced the suspension of all debt service payments under certain categories of external debt pending an orderly restructuring of the affected obligations.
The suspension will include the payment of Eurobonds, commercial term loans, and payment of bilateral debt.
It will however not include the payment on the multilateral debt, a new debt contracted after December 19, 2022, or debt related to certain short-term trade facilities.
A statement from the Finance Ministry says this is aimed at bringing the country’s unsustainable debt level under control.
The statement said government is also evaluating certain specific debts relating to projects with a high socio-economic impact for Ghana which may have to be excluded.
This suspension according to the government is an interim emergency measure pending future agreement with all relevant creditors.
Meanwhile, government is assured its external creditors that the engagement on the move will be fair, transparent, and comprehensive debt restructuring exercise in line with international best practices.
The statement ends that the Ministry of Finance will hold an investor presentation at a date to be announced at a later stage.
The Ministry of Finance has earlier announced an extension of the debt exchange program to December 30.
The debt exchange program was to deal with the country’s economic crisis in. The program which was to expire today has been extended to January 6 next year.
The Ministry explained that the extension comes on the heels of the announcement of the staff level agreement between government and the IMF.
