Minister of Finance, Dr Mohammed Amin Adam says Ghana’s Eurobond restructuring efforts have achieved huge success, with over 98% of investors participating in the country’s consent solicitation. According to him, this marks a significant step forward in Ghana’s debt restructuring process, resulting in a 37% reduction in the nominal value of the nation’s debt, translating to $5 billion in debt forgiveness and $4.3 billion in debt service savings during the ongoing International Monetary Fund (IMF) programme.
The restructuring, which took place through a consent solicitation launched last month on the London Stock Exchange, sought the approval of Eurobond holders to amend the original terms of $13 billion in debt owed to them. As part of the agreement, investors will accept a 37% haircut on their investments, with coupon payments suspended until 2026.
At a press briefing in Accra on Thursday, October 3, 2024, Dr Amin Adam disclosed that the 98.6% participation rate far exceeded the government’s target of 65%.
“As a result of this successful debt exchange, the country will exchange US$13 billion in Eurobonds for new bonds in the coming weeks,” he said.
Dr Amin Adam also noted that this development effectively cures Ghana’s default on international bonds, paving the way for renewed relationships with rating agencies and global financial markets.
“Ghana has achieved significant debt relief and in record time. By this feat, Ghana has accomplished a remarkable milestone in its debt restructuring journey, completing its Eurobonds debt exchange in under nine months.
“This swift action showcases the government’s unwavering commitment to restoring financial and debt sustainability, the minister added.
By: Ekow Annan/newsalertgh.com
