Ghana, two bondholder groups reach interim deal on 13-bln-USD debt

By Justice
  • World
  • Tuesday, 25 Jun 2024

ACCRA, June 24 (Xinhua) -- The Ghanaian government and two of its bondholder groups have reached a deal in principle on restructuring their Eurobonds valued at 13 billion U.S. dollars, a statement by the government of Ghana said Monday.

The statement said the two bondholder groups are the International Steering Committee and the Regional Steering Committee of the Ad Hoc Creditor Committee of International Bondholders.

The Agreement in Principle came on the heels of another agreement between Ghana and its bilateral creditors, which paved the way for the executive board of the International Monetary Fund (IMF) to approve the second review of the country's reforms and pave the way to disburse 360 million dollars to aid Ghana's ailing economy.

The formal launch of the consent solicitation will come in the upcoming weeks once the partners agree on definitive documentation, according to the statement.

"In accordance with the terms of the existing bond documentation, the government will seek the required approvals and support of the broader bondholder community to consummate this important transaction successfully," the statement added.

"It is a most welcome development that will yield significant debt service savings as well as improve economic certainty and confidence," commented Leslie Dwight Mensah, resident fellow at the Institute of Studies, a local economic think tank.

Ghana has been battling a severe economic meltdown with record-high inflation, debt overhang, and exchange rate depreciation, culminating in a surge in the cost of living.

The government secured a loan of 3 billion dollars from the IMF in May 2023 to implement reforms aimed at steering the economy out of troubled waters.

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