Ghana reaches agreement with Eurobond holders

Ghana has reached an agreement with Eurobond holders to restructure debts of $13 billion.

The Committee of holders of Ghana’s Eurobonds (the Committee) who announced this said the proposed agreement on the restructuring of the Eurobonds will resolve Ghana’s default on the Eurobonds in a manner that provides significant cash flow and debt stock relief to support Ghana’s economic recovery in the context of the IMF-financed program. 

Alongside debt relief, the Committee recognizes that the most important factor to support Ghana’s fiscal and debt sustainability going forward is sustained economic policy implementation to bolster macroeconomic stability, improve the investor environment and to institutionalize fiscal credibility. 

In particular, the Committee welcomes the government’s commitment to reinstate and implement an amended Fiscal Responsibility Act. 

The non- financial provisions included in the agreement-in-principle, such as the semi-annual disclosure of public debt, the most-favored-creditor clause and loss reinstatement clause, are part of the package of measures to normalize relations with bondholder investors and to progress towards restoring Ghana’s international market access.