Finance

Ghana reaches agreement in principle with bondholders to restructure $13 billion debt – Report

The government of Ghana has reached an agreement in principle with its bondholders for the restructuring of $13 billion in Eurobonds, as reported by Reuters.

The sources familiar with the development stated that the deal will involve international bondholders taking a 37 percent principal haircut, with the maturity of the bonds extended.

After suspending debt payments in 2022, Ghana has now defaulted on approximately $30 billion of its external debt.

Following a similar approach to Zambia’s debt deal with international bondholders, Ghana has also opted for debt treatment under the G20 Common Framework, which is expected to expedite debt restructurings.

One source quoted by Reuters said, “For Ghana, things are pretty close. We can expect an announcement by next week,” while requesting anonymity due to not being authorized to speak to the media.

However, two other sources familiar with the deal suggested that a formal announcement will likely be made on Friday, June 21, 2024.

Since March 2024r, Ghana has been engaged in formal negotiations with two groups of international bondholders for a debt restructuring, but the talks failed to reach an agreement as they did not meet the International Monetary Fund’s (IMF) debt sustainability analysis requirements.

Ghana then presented a revised deal to its international bondholders, resulting in them reaching an agreement in principle.

The country is also anticipating approval from the IMF Executive Board for the third tranche disbursement of bailout funds, totalling $360 million under the three-year IMF Extended Credit Facility program.

The IMF Board is scheduled to convene on June 28, 2024, to address this matter.

 

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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