(Bloomberg) -- Ghana is renegotiating with its official creditors for better terms in an ongoing debt restructuring process, following receipt of draft terms last week.

Agreeing to a preliminary memorandum of understanding with the bilateral creditors will pave the way for the International Monetary Fund to disburse $360 million to the West African nation under a $3 billion program. The inflows will serve as buffer for the cedi, which has lost 18% of its value to the dollar this year, the fourth worst performer among 150 currencies tracked by Bloomberg.

“We have received the memorandum of understanding, there may be aspects of it that we’re not comfortable with and would want it looked at again, so we’re in the stage of negotiation,” Minister of Finance Mohammed Amin Adam said in an interview Wednesday in Kenya’s capital, Nairobi. “There’s confidence among us and our partners that we can reach a deal soon.”

The country reached a staff-level agreement with the IMF after a second review of the program in April. Reaching a pact on a draft MOU was a condition for completion of the review and further disbursement from the Washington-based lender, bringing total payments under the facility so far to $1.56 billion.

The cedi weakened 0.4% to 14.7478 per dollar by 10:00 a.m. in the capital, Accra. That’s a new record low, since at least 1994 when Bloomberg began compiling the data. Increased dollar demand for imports, payments to private power producers, speculation and uncertainty around completion of debt rework are the factors driving the depreciation, the Bank of Ghana said on Monday.

Ghana, which is reorganizing almost all of its $45 billion of loans to meet debt sustainability requirements under the IMF program, reached an agreement in principle in January to revamp $5.4 billion of obligations owed to its official creditors.

An MoU consistent with the January deal is an important next step in the debt revamp, which also includes separately striking terms with Eurobond investors owed $13 billion.

“I’m hoping that by the end of June, we should be done with all the talks,” Adam said on the sidelines of an African Development Bank annual meetings. By that time “if everything goes well we should be able to close the negotiations with Eurobond holders as well.”

An initial deal with the bond holders last month was rejected by the fund because it failed to show it could support a reduction in the country’s debt ratio to 55% of gross domestic product by 2028. Another round of talks will commence soon with a view to finalizing and reaching an agreement with the private investors, Adam said.

The IMF is preparing a new debt sustainability analysis, whose outcome will show the way forward for the negotiations, Bloomberg reported last week, citing people familiar with the matter.

However, another leg of the nation’s debt discussions to reorganize $1.6 billion of arrears owed to private power producers is at risk as the suppliers that generate over 60% of peak demand, threaten to abandon their talks unless the government fulfills some conditions.

The development could jeopardize Ghana’s efforts that started since December 2022 to complete a debt restructuring due to the impact it’ll have on sustainability assessments.

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