Ghana’s approval of a $2.8bn debt restructuring framework with 25 creditor nations signals an ambitious push to recover from its 2022 default. The goal? Cut its debt burden and rebuild investor trust. But this framework is just the start—the creditor countries must now ratify the deal domestically. Meanwhile, key private creditors remain unconvinced, complicating the country’s efforts. Ghana’s restructuring efforts are backed by the International Monetary Fund, a development that is vital to get investors on board. However, the backing brings tough reform demands, and pressure from US lawmakers complicates things further. Domestic arrears, especially in the power sector, also threaten to derail recovery efforts. With inflation easing and modest growth returning, optimism is growing—but the real test lies in pushing through painful reforms. Without them, Ghana risks undoing its fragile progress.
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