Government suspends payment of Eurobonds and other external debts

Nazir Hamzah December 19, 2022

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The Government of Ghana has announced suspension of all debt service payments under certain categories of the country’s external debt, pending an orderly restructuring of the affected obligations.

This suspension includes the payments on the country’s Eurobonds; commercial term loans; and on most of the country’s bilateral debt.

According to a statement issued by the Finance Ministry on Monday, December 19, the suspension will not include the payments of Ghana’s multilateral debt, new debts (whether multilateral or otherwise) contracted after December 19, 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,” the statement said.

The statement further noted that the suspension is an interim emergency measure pending future agreements with all relevant creditors.

Government also opined that the suspension of all debt services is aimed at bringing the country’s unsustainable debt level under control and prevent further deterioration of the economic, financial, and social situation in Ghana after announcing a debt exchange programme.

“Our financial resources, including the Bank of Ghana’s international reserves, are limited and need to be preserved at this critical juncture,” the ministry’s statement noted.