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Ghana has achieved an interim agreement with international bondholders, according to Minister of Finance Dr. Mohammed Amin Adam.
Still, he claimed, the deal needs to be adjusted to fulfill the debt sustainability goals set by the International Monetary Fund (IMF).
Prior to today, Monday, April 15, the Finance Minister had declared that Ghana’s attempt to restructure $13 billion in foreign bonds had failed to result in a feasible debt agreement with two bondholder groups.
“We will therefore regroup to continue negotiations until we reach a deal that is consistent with IMF debt sustainability targets,” he wrote on X platform, on Monday.
Ruters reported that formal talks were on hold for now after the International Monetary Fund indicated that the deal would not fit its debt sustainability parameters, the government said in a statement.
“We will regroup to continue negotiations until we reach a deal that is consistent with IMF debt sustainability targets,” Minister of Finance Mohammed Amin Adam’s office stated on X following the release of the government’s regulatory statement.
He noted that although Ghana and bondholders had achieved a “interim deal,” adjustments were necessary to satisfy IMF targets.
Since March 16, Ghana has formally held talks with two groups of bondholders: one comprising regional African banks and another of Western asset managers and hedge funds.
A portion of the suggested changes, which included keeping the bonds’ original value but giving them a longer maturity and a lower coupon, were also rejected by the regional group.
Ghana’s economic difficulties led to a default on the majority of its $30 billion external debt in December 2022.
Since then, the economy of the second-largest cocoa producer in the world has begun to strengthen; in 2023, growth was 2.9%, above the 2.3% prediction released in January by the IMF.
Read the Finance Minister full post on X below:
Source: Ghanatodayonline.com
