Ghana has suspended the servicing of most of its external debts amid a worsening economic crisis, the Ministry of Finance said on Monday.
“This suspension will include the payments on Eurobonds, commercial term loans, and most of the bilateral debts,” said a press release by the ministry.
According to the release, the decision is an interim, additional emergency measure to prevent further deterioration of the economic, financial, and social situation in Ghana.
“This suspension will not include multilateral debt, new debts contracted after Dec. 19, 2022, or debts related to certain short-term trade facilities,” it added.
The release said Ghana’s financial resources, including the Bank of Ghana’s international reserves, are limited and needed to be preserved at this critical juncture.
“The government stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable through a fair, transparent, and comprehensive debt restructuring exercise in line with international best practices,” the statement added.
Ghana, which is an exporter of cocoa, gold, and crude oil has, since the first quarter of this year, been under multiple economic crises.
This includes fiscal slippage, declining international reserves, soaring inflation, high-interest rates, high commodity prices, and exchange rate fluctuations.