Ghana has taken another step in its long‑running efforts to stabilise its economy by signing its 11th bilateral debt restructuring agreement, this time with the Export‑Import Bank of India (EXIM India), the Finance Ministry announced Monday.
Finance Minister Dr. Cassiel Ato Forson said the agreement, reached with EXIM India — the Indian government‑owned export credit agency — forms part of Accra’s broader strategy to restore macroeconomic stability and reduce the risk of debt distress that has plagued the West African nation for years.
In a social media post, Dr. Forson said the signing underlined “steady progress” in Ghana’s external debt restructuring programme and reflected continued cooperation with official bilateral creditors. “We are moving steadily towards a low risk of debt distress, with clear indicators that the worst is behind us,” he wrote.
Ghana’s debt difficulties date back to mounting fiscal imbalances, high borrowing costs, and external shocks that culminated in sovereign debt distress. The country entered a comprehensive debt restructuring process under the auspices of the International Monetary Fund (IMF) and G20 Common Framework after suspending payments on much of its external debt in late 2022.
The restructuring process includes a domestic debt exchange programme, negotiations with commercial and bilateral creditors, and efforts to reduce the country’s overall debt burden to sustainable levels. IMF guidelines aim to bring Ghana’s public debt and external debt service ratios closer to international best practices, with targets set through 2028.
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EXIM India’s role in Ghana’s external financing has previously included lines of credit for development projects, particularly in infrastructure and energy, under bilateral trade and cooperation agreements. Exim Bank of India’s mandate is to facilitate international trade and investment, including through credit facilities and project finance for partner countries.
Analysts say the restructuring with EXIM India, while not cancelling principal amounts outright, likely adjusts repayment terms — such as extending maturities or altering interest schedules — to ease Ghana’s short‑term debt service obligations and support liquidity. These renegotiations are typical in debt treatments that seek to strike a balance between creditor recovery and debtor sustainability.
This latest agreement brings to 11 the number of official bilateral deals Ghana has concluded with foreign creditors — a key pillar in its external debt resolution framework. Previous bilateral arrangements have been reached with other partner countries and creditors, each designed to unlock relief and build confidence in the programme.
Despite progress, some external and private creditor negotiations — including with certain bondholder classes and commercial banks — remain ongoing, and the complete resolution of Ghana’s external obligations has not yet been fully achieved. International financial institutions emphasize the need for continued fiscal discipline and structural reforms to avoid future debt accumulation.
Domestic reactions to the announcement were mixed. Supporters of the government’s debt strategy argue that successful restructurings are essential to restoring investor confidence, stabilising the Ghanaian cedi, and freeing up resources for vital public services. Critics, however, caution that debt relief, while necessary, must be paired with stringent oversight of new borrowing and spending to prevent a recurrence of unsustainable debt growth.
In tandem with the EXIM India deal, Dr. Forson reiterated the government’s commitment to fiscal reform, including plans to introduce a new Loans Act aimed at tightening how borrowed funds are used, ensuring that future debt is tied to high‑impact projects that deliver measurable benefits to Ghanaians.
The government says its focus now is on honouring all restructured obligations on time, maintaining strong fiscal discipline, and creating an environment that supports economic growth and debt sustainability.
