Ghana, bondholders reach agreement in principle to restructure $13 billion debt, sources say By Reuters

By Maxwell Akalaare Adombila

ACCRA (Reuters) – Ghana has reached an agreement in principle with its bondholders for the restructuring of $13 billion worth of international debt, three sources told Reuters on Thursday, on the heels of a deal finalised with official creditors earlier this month.

The deal will see bondholders take a haircut on principal of up to 37% and maturity of the bonds lengthened, two of the sources said.

The West African gold and cocoa producing nation defaulted on most of its $30 billion in external debt in 2022, under the strain of the COVID-19 pandemic, the war in Ukraine and higher global interest rates and surging debt.

“Things are pretty close. We can expect an announcement by next week,” one source said, asking not to be named because they were not authorised to speak.

The other two sources said the announcement could come as soon as Friday.

The Ghanaian Finance Ministry and the Paris Club could not immediately be reached for comment due to the late hour.