The borrowing cap is a key component of Ghana’s broader debt restructuring strategy
Ghana has been restricted from borrowing more than $250 million in external loans, including commercial loans, in 2025 under a borrowing cap established as part of a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC).
This borrowing limit has been set as a structural benchmark under Ghana’s International Monetary Fund (IMF) program, allowing the Fund to monitor and evaluate the country’s compliance annually.
The MoU, signed by all participating creditor nations, facilitates bilateral agreements to enforce the $250 million disbursement ceiling.
According to a report by myjoyonline.com, the borrowing cap is a key component of Ghana’s broader debt restructuring strategy, which began in 2022 when the country suspended external debt servicing.
It aligns with the ongoing Eurobond restructuring, where the government is exchanging $13.1 billion in outstanding Eurobonds for new notes.
With the borrowing limit in place, the Ministry of Finance is collaborating with bilateral creditors to prioritize funding for critical ongoing projects.
Government agencies have been directed to exclude externally funded capital expenditure (CAPEX) from their 2025 budgets until the Ministry finalizes its list of priority projects.
The borrowing restriction presents a significant challenge for the new National Democratic Congress (NDC) administration, which campaigned on ambitious infrastructure promises while grappling with substantial restructured debt obligations.
Speaking to Bloomberg at the Munich Security Conference in February 2025, President John Mahama indicated that his administration does not intend to extend the IMF program beyond its scheduled conclusion in May 2026.
Meanwhile, Ghana is actively engaging with commercial creditors, including Eurobond holders, to finalize restructuring agreements in line with the comparability of treatment principle.
ID/MA
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