France has become the first country within the Paris Club group of creditors to sign a bilateral agreement granting debt relief to Ghana, marking a significant step in the West African nation’s ongoing external debt restructuring efforts.

The agreement, signed in Accra, comes in the wake of Ghana’s mid-year budget presentation and follows months of negotiations after the country defaulted on portions of its external debt due to what officials described as unsustainable debt levels, exacerbated by the COVID-19 pandemic.

"Today is a milestone,” Joy News quoted Ghana’s Finance Minister Cassiel Ato Forson saying at the ceremony. “It has taken us some time to get here, but it is the most significant one, which will pave the way for others to also emulate the steps taken by France.”

Ghana is undergoing a major debt restructuring as part of an International Monetary Fund-backed recovery programme. The country reached a staff-level agreement with the IMF in late 2022 and is seeking coordinated support from its bilateral creditors to restore debt sustainability and unlock further disbursements.

“We expect to complete the process as soon as possible so that Ghana will breathe again,” Forson said, urging other Paris Club members to follow France’s lead.

Also present at the ceremony were French Ambassador to Ghana Jules Armand Aniambossou, Secretary General of the Paris Club William Roos, and members of the Official Creditors Committee, along with senior officials from Ghana’s Ministry of Finance.

Ambassador Aniambossou said France’s decision reflected the strong diplomatic ties between the two countries and the urgency of supporting Ghana’s economic recovery.

“When your friend or family is facing difficulties, you have to show that you are there for them and take some key actions,” Aniambossou said. “This day is crucial because it enables Ghana to continue its financial recovery.”

Roos, who co-chairs Ghana’s Official Creditors Committee, stressed the need for international cooperation, especially between Paris Club members, China, and the G20.

“We have to learn to work together,” Roos said. “We have to progressively build strong trust between France, China, the G20, and Paris Club members.”

Ghana’s public debt stood at over 90% of GDP in 2022, triggering a loss of access to international capital markets. As part of the restructuring, Ghana has already reached an agreement in principle with China - its largest bilateral creditor—and is in talks with other nations to finalise bilateral deals under the Common Framework.

Forson, who is also a lawmaker, expressed optimism that recent macroeconomic improvements would encourage other creditor nations to act swiftly.

“We have gone through turbulent times, but we can see that hope is in sight,” he said. “Inflation, which was at 54%, is now at 13.7% and we expect it to be better.”