Ghana completes external debt restructuring programme, reportedly secures over $8 billion in savings

GHANA – Ghana has reportedly concluded its debt restructuring programme with official creditors and Eurobond holders, Finance Minister Mohammed Amin Adam, has announced.

Ghana restructured US$5.1 billion in debt with official creditors and US$13.1 billion with Eurobond holders, achieving substantial financial relief.

Addressing attendees at a UK Town Hall meeting as reported by Norvan Reports from Ghana, Amin Adam highlighted the government’s adept negotiation skills, which secured US$8 billion in savings.

“Two weeks ago, we finalised negotiations with official creditors, restructuring US$5.1 billion and securing US$2 billion in savings.

“We have now also concluded negotiations with Eurobond holders on the US$13.1 billion debt, we have negotiated a good deal for Ghana and that is US$8 billion in savings,” he stated.

The restructuring efforts, part of a broader strategy to meet International Monetary Fund (IMF) targets, include delayed interest payments and extended maturity dates with bilateral creditors.

To align with the IMF’s requirements, Ghana aimed to reduce its debt-to-GDP ratio to 55 percent by 2028, down from a projected 109 percent prior to the restructuring.

Ghana’s economy has outperformed expectations, expanding by 2.9 percent in 2023 compared to the IMF’s initial forecast of 1.5 percent.

This robust growth supports a revised Debt Sustainability Analysis (DSA), accommodating for the new agreement with bondholders, Amin Adam noted.
The current bondholder agreement would leave the country’s public debt slightly above the 55 percent target.

Ghana’s debt restructuring journey began over a year ago, following an agreement in principle with bilateral creditors under the G20 Common Framework for Debt Treatment.

This set the foundation for subsequent negotiations with Eurobond holders, culminating in the current agreement.

The successful restructuring reportedly marks a critical step in stabiliSing Ghana’s economy and achieving long-term fiscal sustainability.

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