Ghana Bar Association, Attorney-General, Ministry Of Justice Announce Looming Debt Restructuring Measures

The Ghana Bar Association (GBA), the Attorney-General and Minister of Justice (AG), and the Ministry of Justice (MoJ) recently revealed impending debt restructuring plans for Ghana.

The AG and the Ministry of Justice have mentioned the need for these plans to manage Ghana's unsustainable debt burden. As part of the plans, Ghana will suspend interest payments on some of its external debts. The government is also considering seeking relief from other creditors, including multilateral and commercial lenders.

The debt restructuring measures come as Ghana faces significant financial challenges. The country's debt-to-GDP ratio has risen to over 80%, and the government has struggled to meet its debt service obligations.

Implications of Debt Restructuring Measures

The debt restructuring measures are likely to have a significant impact on Ghana's economy. The suspension of interest payments will free up some fiscal space for the government, which could be used to fund other essential expenditures.

However, the debt restructuring measures may also lead to a downgrade in Ghana's credit rating, which could make it more expensive for the government to borrow in the future.

The GBA, AG, and MoJ have stated that the debt restructuring measures are necessary to ensure Ghana's long-term economic stability. However, the full impact of these measures will only be known in the coming months.