(Ecofin Agency) – International bondholders have agreed to reduce Ghana’s US$13 billion debt by 37%, “ after long and difficult negotiations “. The West African country has been in default since 2022.
After more than a year of discussions, Ghana has reached an agreement with international bondholders for the restructuring of its external debt which amounts to 13 billion USD.
This is what the government announced in a press release evoking an agreement which allows the country to get rid of 37% of this debt owed to these private creditors which are international asset managers and African banks, holders of bonds of the Ghanaian State.
This haircut approved by more than 90% of bond holders is historic, because it is the largest ever recorded on an African debt. “ The successful completion of this Eurobond debt swap is an essential part of Ghana’s debt restructuring process under its program with the International Monetary Fund. The Republic of Ghana appreciates the continued support of its bondholders throughout this process. This success not only reflects a shared commitment to restoring debt sustainability, but also paves the way for a normalization of Ghana’s relations with financial markets. » declared the Ghanaian government.
Ghana has been in default on a large part of its external debt since 2022, following economic difficulties. This situation had caused the country to be excluded from international capital markets, which is why Accra was forced to turn to the domestic market for its fundraising, via Treasury bills with high interest rates.
Thanks to this agreement with international holders, Ghana should now focus its efforts on its reform program aimed, according to local authorities, at improving the well-being of the population and stabilizing finances.
SG
