The International Monetary Fund (IMF) has reclassified Ghana from ‘critical’ to ‘moderate’ debt distress, ending four years of the West African economy being in the extreme red.
The reclassification of Ghana’s debt sustainability came after Accra met three critical conditions attached to the ongoing restructuring of its sovereign debt after default in 2022.
According to the IMF, Ghana has inked debt relief agreements with a significant proportion of its external creditors, triggering upward revision of its debt sustainability position. “Ghanaian authorities have made significant progress on comprehensive public debt restructuring. Debt relief agreements consistent with the Official Creditor Committee Agreement have been signed with more than half of bilateral creditors. Agreements in principle have been reached with a similar share of external creditors,” the IMF said in a statement. “Good faith engagement with the remaining external creditors is ongoing, with a restructuring consistent with programme parameters and comparability of treatment.
The Official Creditor Committee refers to the G20-led debt restructuring convening body established in May 2023 that is co-chaired by China and France. The Committee is designed to accelerate the debt restructuring process by providing a shared platform across all creditors.
Good faith engagement refers to the appreciation that both creditor and debtor are engaging with absolute transparency, share requisite financial disclosures and demonstrate commitment to reaching a fair agreement in a debt restructuring process.
Agreement in principle is a preliminary, non-binding agreement between a creditor and a borrower that sets out the broad framework upon which debt relief will be anchored.
The IMF’s upgrade of Ghana’s debt sustainability classification also comes just three weeks after the country made a $700 million Eurobond payment to creditors ahead of schedule, pushing its total Eurobond debt service to $2.1 billion since resumption of payments. “On July 2, 2026, Ghana’s Ministry of Finance fully settled its $700 million ahead of schedule. The payment consisted of $525.2 million in principal repayments and $174.8 million in interest payments. With the latest payment, Ghana has paid a total of $2.1 billion to Eurobond holders since January 2025 in accordance with the terms of the Eurobond Debt Exchange Programme,” Ghana’s Ministry of Finance said in a statement.
Accra’s upgrade also comes as the country winds up its three years and three months-long programme with the IMF following conclusion of the sixth and final review of the $3 billion Extended Credit Facility (ECF) arrangement with the Bretton Woods lender, clearing the way for a final disbursement of $371 million.
Ghana has since tabled a request to the IMF for a three-year Policy Coordination Instrument - a non-financing arrangement with the Fund designed to help economies tailor a macroeconomic reforms package that builds buffers against external shocks.
