Supporting agreements with the international institutions
Program with the IMF under the PRGF approved on May 03, 1999
Download the IMF report : letter of intent
Total external debt of the country
$6 000 million as of December 31, 2000
$1 800 million of which being due to Paris Club as of February 01, 2002
Amounts treated
$163 million of which $91 million being canceled, of which $72 million being rescheduled
Accorded treatment
Restructuring of the public external debt
Decision point reached on February 22, 2002
Categories of debt treated
Treatment of maturities falling due from February 01, 2002 up to September 30, 2004
Repayment profile
Treatment under Cologne terms (cancellation rate of 90%)
- repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 90%
- repayment of ODA credits over 40 years with 16 years of grace
Specific provisions
Possibility to conduct debt swaps
On a voluntary and bilateral basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt for nature, debt for aid, debt for equity swaps or other local currency debt swaps: (i) all ODA loans; (ii) the amounts of other outstanding credits, loans and consolidations mentioned in Article II paragraph 1, up to 10% of the amounts of outstanding credits as of July 1, 1995 or up to an amount of 10 million US dollars, whichever is higher. Participating Creditor Countries and the Government of the Republic of Ghana shall inform semi-annually the Secretariat of the Paris Club, who shall inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Ghana's economy and on the evolution of Creditor's exposure shall be transmitted to the Secretariat, including: its nature and purpose ; the parties to the debt swap; the amount, type and value of the debt treated; the price of sale to investors and the expense of the Republic of Ghana.
Good will clause
Participating Creditor Countries declare their readiness in principle to extend under the same conditions, by amendment to the present Agreed Minute, the period of consolidation if, after November 30, 2002, the Executive Board of the International Monetary Fund has approved an appropriate follow-up arrangement and Ghana maintained satisfactory relations with Participating Creditor Countries
Payment of non-consolidated amounts before October 30, 2002
Comparability of treatment provision
In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of the Republic of Ghana commits to seek from all its external creditors debt reduction and reorganisation arrangements on terms comparable in net present value to those set forth in the present Agreed Minute for credits of comparable maturity. Comparability of treatment for debt reduction in net present value is assessed not only on the basis of the reduction in the face value of the debt but also on the terms of repayment of the debts not cancelled.
Consequently, the Government of the Republic of Ghana commits to accord all categories of creditors - and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers - a treatment not more favorable than that accorded to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Ghana with its creditors not listed in the present Agreed Minute on the one hand, and arrangements with the Participating Creditor Countries on the other hand, all relevant elements shall be taken into account, including the exposure of the creditors not listed in the present Agreed Minute, the level of cash payments received by those creditors from the Government of the Republic of Ghana as compared to their share in the Republic of Ghana's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganised claims and in particular their repayment terms whatever forms they take, and in general the financial relations between the Government of the Republic of Ghana and the creditors not listed in the present Agreed Minute.
Cut-off date
June 20, 1999
Organisation of the session
The meeting was chaired by Mr. Ambroise Fayolle, Vice President of the Paris Club.
The head of the debtor country's delegation was Mr. Yaw Osafo-Maafo, Minister of Finances.
Files attached
PressR6870.pdf (102.8 KB)