Ghana’s government has achieved an agreement in principle with the Committee of Holders of its Eurobonds on debt restructuring, paving the way for the country’s economic recovery.
The agreement is intended to provide considerable cash flow and debt stock relief to Ghana’s economic recovery in accordance with the International Monetary Fund-funded programme.
The Committee, which represents bondholders, reaffirmed its support for Ghana’s commitment to long-term economic policies aimed at improving macroeconomic stability, increasing investor confidence, and institutionalizing fiscal credibility.
The agreement includes measures for semi-annual public debt disclosure, a most-favorable-creditor clause, and a loss reinstatement clause, all of which are intended to normalize relations with bondholder investors and restore Ghana’s access to international markets.
The Committee, in a statement on Monday, June 24 has advised all investors of Eurobonds to carefully review the terms of Ghana’s potential offer and independently evaluate the benefits and risks of participating.
“The proposed deal on the restructuring of the Eurobonds will settle Ghana’s default on the Eurobonds in a way that offers considerable cash flow and debt stock relief to help Ghana’s economic recovery under the IMF-financed programme.
“In addition to debt relief, the Committee believes that the most critical component supporting Ghana’s fiscal and debt sustainability in the future is consistent economic policy implementation to strengthen macroeconomic stability, improve the investor environment, and institutionalize fiscal credibility. The Committee is particularly pleased with the government’s resolve to reinstate and execute an updated 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 the loss reinstatement clause, are part of a package of measures to normalize relations with bondholder investors and advance Ghana’s international market access.
