Home Business Ghana Secures Interim Deal on US$13 Billion Eurobond Debt Restructuring

Ghana Secures Interim Deal on US$13 Billion Eurobond Debt Restructuring

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Eurobond

The government of Ghana has reached an interim agreement with two bondholder groups to restructure its Eurobonds valued at $13 billion, according to a statement released on Monday.

The agreement, in principle, involves the International Steering Committee and the Regional Steering Committee of the Ad Hoc Creditor Committee of International Bondholders.

This development follows a recent agreement between Ghana and its bilateral creditors, a critical step that enabled the International Monetary Fund’s executive board to approve the second review of Ghana’s reform program, facilitating a $360 million disbursement to support its struggling economy.

The formal launch of the consent solicitation is expected in the coming weeks, pending final agreement on documentation.

Leslie Dwight Mensah, resident fellow at the Institute of Studies, described the agreement as a significant achievement that promises substantial debt service savings and enhances economic certainty and confidence.

Ghana has been grappling with severe economic challenges, including soaring inflation, a heavy debt burden, and currency depreciation, which has severely impacted living costs.

The $3 billion IMF loan secured by Ghana in May 2023 aims to implement reforms that will stabilize the economy amidst these challenges.

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