GHANA: IMMINENT IMF DEAL AND BILATERAL DEBT CONSENSUS BYPASS COMMON FRAMEWORK

   Mon, 24 April 2023

Ghana is edging towards a “Sri Lanka-style” debt deal with the IMF in which Eurobond holders are set to be marginalised to ensure that domestic, bilateral, and concessional loans suffer minimal losses. If such a bilateral deal is implemented, it would effectively bypass the multilateral Common Framework and offer little assurances for Ghana’s plethora of commercial creditors – just as Pangea-Risk forecasted in our recent white paper on the politics of African debt restructuring. However, for Ghana itself, such a bilateral debt deal is an advantageous prospect that would come alongside a tentatively recovering economy, strengthening local currency, and slowing inflation.

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