- Ghana's debt restructuring efforts gained momentum
- Eurobond holders will accept a significant reduction
- This agreement is projected to save Ghana $4.7 billion
Ghana’s debt restructuring efforts gained momentum as the Official Creditor Committee (OCC) confirmed the agreement reached with Eurobond holders adheres to the principle of fair treatment for all creditors.
This principle, known as Comparability of Treatment, is a key part of the G20’s Common Framework for Debt Restructuring. It ensures that Ghana treats all its external creditors fairly during the restructuring process.
The recently announced agreement involves restructuring roughly $13.1 billion in Eurobond debt. Under the terms, Eurobond holders will accept a significant reduction, or “haircut,” of 37% on their holdings. Additionally, coupon payments will be suspended until 2026.
This agreement is projected to save Ghana $4.7 billion in debt and provide $4.4 billion in debt relief. It follows a previous agreement with the OCC to restructure $5.1 billion in bilateral debt.
Ghana’s Ministry of Finance announced the OCC’s approval and expressed its intent to finalize the process swiftly. They plan to work closely with the Eurobond holder committees to finalize documents and begin soliciting consent from all parties involved.
The Ministry also expressed gratitude to its official partners and the representatives of the Bondholder Committees for their collaborative efforts in recent weeks.
