The government has proposed a debt restructuring offer to private banks and contractors, seeking relief for approximately $2.8 billion in debt. Following successful negotiations with bilateral creditors and Eurobond holders, this move aims to ease Ghana’s overall debt burden.
Finance Minister Dr. Mohammed Amin Adam confirmed that the government has engaged these commercial creditors both locally and in China, with hopes that they will accept the proposed terms. This restructuring follows a $13 billion Eurobond deal that led to $4.7 billion in debt cancellation and a $5.1 billion bilateral debt agreement that provided $2.8 billion in debt service relief.
Additionally, the government has finalized negotiations with five Independent Power Producers, achieving a $6.6 billion savings on power agreements. Dr. Amin Adam noted that a 21-day exchange offer for Eurobonds will launch soon, offering investors two options: a no-nominal haircut with low interest rates, or a 37% haircut with higher interest.
As Ghana prepares for the third review of its IMF-supported programme, the government is confident of meeting its performance targets, which would lead to a $360 million disbursement. The country is also making progress on reforms under a $900 million World Bank Development Policy Operation, with five of 10 targets achieved. Pending parliamentary approvals of key legislation will facilitate the next tranche of funding.
