Home Featured News Bondholder committee reaches agreement-in-principle with Ghana on debt restructuring

Bondholder committee reaches agreement-in-principle with Ghana on debt restructuring

An agreement in principle has been reached with the Government of Ghana to restructure the Eurobonds, addressing the nation's default and providing substantial financial relief.

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The Committee of holders of Ghana’s Eurobonds (the Committee) has announced a significant milestone in the country’s economic recovery efforts.

An agreement in principle has been reached with the Government of Ghana to restructure the Eurobonds, addressing the nation’s default and providing substantial financial relief.

The restructuring agreement aims to resolve Ghana’s default on its Eurobonds, offering significant cash flow and debt stock relief. This move is designed to support Ghana’s economic recovery in conjunction with the International Monetary Fund (IMF)-financed program.
The Committee emphasizes that sustained economic policy implementation is crucial for maintaining fiscal and debt sustainability.

This includes bolstering macroeconomic stability, improving the investment climate, and institutionalizing fiscal credibility.
A key aspect of the agreement is the Government’s commitment to reinstate and implement an amended Fiscal Responsibility Act.

The non-financial provisions, such as semi-annual public debt disclosures, the most-favored-creditor clause, and the loss reinstatement clause, aim to normalize relations with bondholder investors and restore Ghana’s access to international markets.

“The most important factor to support Ghana’s fiscal and debt sustainability is sustained economic policy implementation,” the Committee stated. “We welcome the Government’s commitment to reinstate and implement an amended Fiscal Responsibility Act.”

The agreement’s implementation is contingent on mutual agreement on deal documentation and other stated conditions.

The Committee members, which include Abrdn, Amundi (UK) Limited, Grantham, Mayo, Van Otterloo & Co. LLC, Greylock Capital Management, Neuberger Berman, and Wellington Management, encourage all Eurobond holders to carefully consider the terms of the Government’s prospective offer.

This restructuring agreement is a crucial step towards Ghana’s economic recovery, with the Government committed to creating a stable economic environment that will benefit both the country and its investors.

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