Ghana fails to reach agreement on debt deal with international bondholders – Report
The Government of Ghana has failed to reach an agreement with international bondholders towards the restructuring of about $13 billion of its external debt, Reuters has reported.
According to the international news portal which cited a statement from government as its source on Monday, the country failed to reach a deal with two groups of international bondholders for a debt treatment.
The report noted that the IMF said the proposed deal for bondholders would not be compatible with debt sustainability parameters.
In addition, a ‘regional’ bondholder group, which includes some African banks, also rejected part of the deal proposed by the government of Ghana.
In December 2022, Ghana experienced one of its worst economic downturns as it defaulted on making payments on most of its external debt consisting of $30 billion.
The country has since been shut out from international capital markets and now resorted to the domestic treasury bill markets for borrowing.
Ghana, which is currently under a 17th IMF bailout programme on April 13, 2024 reached a staff-level agreement with the IMF Mission team seeking to pave way for third installment of the bailout funds of $360 million.
IMF Mission Chief, Stephane Roudet during a joint presser in Accra urged Ghanaian authorities to secure a deal with its commercial and bilateral creditors in order for the IMF Management and Executive Board to approve the next disbursement.
ghanaweb.com
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