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Debt treatment -
July 22, 2004

Supporting agreements with the international institutions

Poverty Reduction and Growth Facility (PRGF) approved on May 09, 2003
Download the IMF report : Arrangement under the PRGF


Total external debt of the country

$7 500 million as of December 31, 2003

$1 942 million of which being due to Paris Club as of June 01, 2004

Amounts treated

$1 560 million of which $823 million being canceled, of which $737 million being rescheduled

Accorded treatment

Completion point reached on July 13, 2004

Categories of debt treated

Treatment of arrears as of May 31, 2004

Treatment of the stock as of June 01, 2004

Repayment profile

Treatment under HIPC Initiative Exit terms

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-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.

Payment of non-consolidated amounts before January 31, 2005

Comparability of treatment provision

The Republic of Ghana was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in December 2000 and was declared to have reached its Completion Point on July 13, 2004. In this context, the Republic of Ghana commits to seek promptly from all its external creditors which are not participating in the present Agreed Minute, their appropriate contribution in terms of debt relief to the enhanced HIPC initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.

The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors 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 reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Republic of Ghana and creditor countries not listed in the present Agreed Minute.

Consequently, the Republic of Ghana commits not to accord any category of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.

Cut-off date

June 20, 1999

Organisation of the session

The meeting was chaired by Me Odile Renaud-Basso, Co-Chairperson of the Paris Club.

The head of the debtor country's delegation was M. Yaw Osafo-Maafo, Minister of Finance and Economic Planning.

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