The government of Ghana is working towards restructuring Eurobonds worth US$13 billion with commercial creditors by the end of the year. The process involves two bondholder groups – domestic and regional bondholders, and international bondholders. Finance Minister Ken Ofori-Atta presented a set of data and scenarios to commence discussions and expects an agreement by year end.
The government suspended debt service on external commercial obligations in 2022 and is seeking external debt relief of US$10.5 billion between 2023-2026. Successful restructuring is critical to the IMF program and reducing debt-to-GDP ratio. Negotiations with bilateral creditors are ongoing, with the aim of restructuring debts worth US$5.4 billion. The government has also completed the Domestic Debt Exchange program and plans to restructure debts owed to Independent Power Producers (IPPs), Cocoa bills, local US dollar-denominated bonds, and Bank of Ghana non-tradable debt.
Ghana’s total debt stood at GH¢435.30 billion as of end-December 2022. The IMF program will provide Ghana with a total of $3 billion in tranches.
Source : Graphic Business