According to a Paris Club representative on Thursday, all G20 group of economic power members are in favor of restructuring Ghana‘s debt and are prepared to start the process of creating a creditor committee.
“There is a commitment by the leaders to form the creditor committee, so it’s a question of time. We know that all the G20 members are committed to undertake the debt treatment under the Common Framework,” the Paris Club official told journalists.
Ghana became the fourth nation, following Zambia, Ethiopia, and Chad, to request a restructure of its debt to other nations last week under the G20 Common Framework.
The initiative, which was introduced in 2020, was designed to make it simpler for creditor governments to coordinate the restructuring of low-income countries’ loans following the epidemic.
The official asked to remain anonymous so they could talk openly about the restructuring issue.
The official claimed that Ghana’s issue was less complicated than Zambia’s, which was struggling ever since it became the first African nation to default following the outbreak.
“We think that the process will become smoother and smoother on the basis of the previous cases,” the official said, adding that Ghana’s authorities had sought assurances its case would be dealt with in a “timely manner”.
It took a few months to form a creditor committee in prior situations, but the official stated that the Paris Club members were all prepared to do so for Ghana and anticipated it could be completed in a month.
Progress has been slow in the initial cases, though, which Western nations attribute in part to China, a G20 creditor that is not a member of the Paris Club and has recently grown to be a significant lender.