INSUBCONTINENT EXCLUSIVE:
Ghana has secured a major victory in its battle against mounting debt
The West African nation successfully negotiated a deal with Eurobond holders to cut $5 billion from its financial obligations.This agreement
Mohammed Amin Adam shared the good news at a press conference in Accra.He revealed that an impressive 98% of Eurobond investors had agreed
to participate in the debt restructuring program
external debt held in Eurobonds
As a result, the country will see a significant 37% reduction in the nominal value of this debt.Additionally, Ghana will benefit from $4.3
billion in debt service relief, easing its financial burden
Another positive outcome is the lowering of interest rates on the restructured debt.Ghana Slashes $5 Billion in Debt: Eurobond Holders Agree
(Photo Internet reproduction)The average rate will drop from over 8% to less than 5%
debt and reached agreements with official bilateral creditors
suspension of payments on most external debt
This decision was part of the conditions for securing a $3 billion bailout from the International Monetary Fund in May 2023.Looking ahead,
Ghana plans to exchange the $13 billion in Eurobonds for new bonds soon
restructuring represents a critical step towards long-term fiscal sustainability
management and cooperation with international creditors
As Ghana moves forward, the world will be watching to see how this debt relief impacts its economic future.
