Ghana finance minister to travel to China for debt talks - source

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Ghana finance minister travels to China for debt talks - source

"The talks are expected to focus on ways to reduce Ghana's debt burden and secure additional financing assurances for the country's economic programme," the source said, asking not to be named because the talks are private.

Ghana, which is struggling with its worst economic crisis in a generation, secured a staff-level agreement with the International Monetary Fund in December for a $3 billion loan, though asking lenders to provide financing assurances is a condition for the IMF's board to sign off the programme.The government's current priority is to secure IMF board approval, with the fine details of debt treatment operations to follow later, the source added.

Ghana suspended payments on most of its external debt last year, effectively defaulting, and still needs to negotiate a resolution with its private international bondholders.to rework its bilateral debt under the common framework platform supported by the Group of 20 major economies. An official creditor committee for talks with sovereign creditors is still pending.

Reporting by Christian Akorlie; Writing by Nellie Peyton, editing by Jorgelina do Rosario and Ed Osmond

 

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