Ghana’s bilateral creditors okays deal with Eurobond holders

Ghana’s Official Creditor Committee has confirmed that the agreement in principle reached by the country with Eurobond holders is consistent with the Comparability of Treatment principle.

As part of the OCC Common Framework for Debt Restructuring, there must be comparable treatment of Ghana’s debt due to all its other external creditors in the scope of the restructuring.

Quite recently, the country reached an agreement with Eurobond holders to restructure debts of about 13.1 billion.

The new agreement will see the Eurobond holders take a 37% haircut and also see a suspension of coupon rates until 2026.

This is expected to lead to a debt savings of $4.7 billion and a debt relief of $4.4 billion.

The agreement with Eurobond holders follows an agreement between the country and the OCC to restructure bilateral debts of $5.1 billion.

A release by the Ministry of Finance, announcing the confirmation from the OCC said the government intends to continue proactive engagement with the Steering Committees to finalise documentation and proceed promptly with the consent solicitation.

“The government thanks its official partners as well as representatives from the two Bondholders’ Committees for their constructive engagement over the past weeks,” the release stated.