Ghana reaches agreement to restructure $13bn of Eurobonds

BREAKING NEWSJune 21, 2024 at 5:35 PM UTC

TLDR

Ghana, Eurobond investors agree on $13 billion restructuring deal with potential haircut and adjusted maturities.
Financial terms to be disclosed next week, with potential 37% haircut rate, pending resolution of remaining issues.
Official announcement of restructuring process expected soon, as reported by reliable sources.

Ghana and its Eurobond investors have reached a preliminary agreement to restructure around $13 billion in dollar bonds, a significant milestone in the country's year-long debt overhaul.

The financial terms, including a nominal haircut and adjusted maturities on the Eurobonds, will be revealed next week, according to sources who requested anonymity as they are not authorized to speak publicly.

One source cited by Bloomberg mentioned that the haircut rate will increase to 37% from 33%, though a few non-financial issues remain unresolved. Another source quoted by Reuters indicated that the process is nearing completion, with an official announcement expected next week.

Key Takeaways

The West African nation of Ghana, known for its gold and cocoa production, defaulted on most of its $30 billion external debt in 2022. This was due to the combined pressures of the COVID-19 pandemic, the war in Ukraine, rising global interest rates, and increasing debt. Similar to Zambia, Ghana enrolled in the G20 Common Framework for debt treatment, a program aimed at expediting debt restructuring and involving China, a significant new bilateral lender. Earlier this month, Zambia’s bondholders approved its restructuring deal after the country became the first in Africa to default during the pandemic.

Ghana

Zambia

Eurobond

Economy

Cedis

Debt Restructuring

Debt Crisis

Debt Default

Sovereign Credit

Sovereign Default