The G20 group of economic superpowers has the support of all of its members in the effort to restructure Ghana's debt.
A club official informed Reuters that the members of the Paris Club are prepared to begin the process of creating a creditor committee.
In accordance with the G20 Common Framework, Ghana became the fourth nation after Zambia, Ethiopia, and Chad to ask for a restructuring of the debt it owes to other nations last week.
The initiative, which was introduced in 2020, was meant to make it easier for creditor governments to coordinate the restructuring of low-income countries' loans following the epidemic.
But for the initial instances, progress has been sluggish. Western nations claim this is partly because China, a G20 creditor that is not a member of the Paris Club but has just emerged as a significant lender, lacks expertise in restructuring.
The formation of the creditor committee has been promised by the leaders, thus timing is an issue. According to a representative of the Paris Club, "we are aware that all G20 countries have made a commitment to implement the debt treatment plan outlined in the Common Framework.
To speak openly about the restructuring issue, the official asked that they not be identified.
In prior circumstances, establishing a creditor committee required many months. However, the official stated that they aimed to complete it in a month and that all of the Paris Club members were prepared to do it for Ghana.
The official said that Zambia's case, which has been struggling since it became the first African nation to default during the epidemic, was more difficult than Ghana's. However, the official claimed that Zambia's case was improving.
The source stated, "We believe that the process will get easier and smoother on the basis of the prior instances," adding that Ghana's authorities had requested guarantees that their case would be handled in a "timely way."
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