- $13 billion Eurobond restructuring completed
- $4.7 billion debt reduction and $4.4 billion cash flow relief
- Positive economic growth (6.9% Q2 2024) and reduced inflation
- Commitment to continued reforms for sustainable economic growth
President Nana Addo Dankwa Akufo-Addo is celebrating Ghana’s economic recovery after successfully restructuring $13 billion in Eurobonds, marking the country’s return to the international financial markets. This achievement is a significant milestone, as Ghana had faced significant economic challenges in recent years.
The restructuring process began on June 24, when the Ad Hoc Group of International Bondholders and the Republic of Ghana reached an agreement in principle. This agreement was approved by the International Monetary Fund (IMF) and met the requirements of the Official Creditor Committee for Ghana.
On September 5, Ghana launched a consent solicitation for its proposal to all bondholders, which received overwhelming support, with over 90% of bondholders voting in favor of the deal. The transaction is scheduled to be concluded on October 9, 2024, with old bonds being exchanged for new securities under revised terms.
According to President Akufo-Addo, this achievement marks a new phase of economic recovery for Ghana, returning the country to a sustainable debt path and putting it back on the investor map. “We’ve accomplished what everyone said was impossible – we decisively resolved Ghana’s debt overhang problem,” he stated.
The Minister for Finance and Economic Planning, Mohammed Amin Adam, added that the restructuring will help Ghana restore debt sustainability, reducing the debt stock by $4.7 billion and providing cash flow relief of approximately $4.4 billion over the next two years.
Ghana’s economic growth projections are also positive, with Q2 of 2024 recording the highest quarterly GDP growth in the past five years, at 6.9%. The government remains committed to advancing its reform agenda and attracting new investment to foster growth and job creation.
The successful restructuring was made possible through collaborative efforts with various stakeholders, including bondholders, the IMF, and official creditors. The Government extended gratitude to its advisors, Lazard Frères, Hogan Lovells, and Algest, for their support throughout the process.
This achievement is a testament to Ghana’s commitment to economic stability and growth. As the country moves forward, it is essential to maintain this momentum and continue implementing reforms to ensure long-term economic sustainability.
Ghana’s economic recovery plan is aligned with the IMF’s recommendations, which emphasize the importance of fiscal discipline, monetary policy tightening, and structural reforms. By following this plan, Ghana can achieve its goal of reducing inflation to single-digit levels and increasing economic growth.
Ghana’s successful debt restructuring marks a significant turning point in the country’s economic recovery. With continued commitment to reform and cooperation with international partners, Ghana is poised for sustainable economic growth and development.
