Tue, 16 Apr 2024 Economy & Investments

Ghana reaches interim deal with international bondholders — Finance Ministry

  Tue, 16 Apr 2024
Ghana reaches interim deal with international bondholders — Finance Ministry

Government has reached an interim deal with international bondholders to restructure $13 billion of international bonds, the Ministry of Finance has said.

In a post on X, the Ministry stated that the deal must still be “tweaked” to meet the International Monetary Fund debt sustainability target.

The Ministry said it would regroup to continue negotiations until a deal that is consistent with the International Monetary Fund’s (IMF) debt sustainability targets is achieved.

“This is not a failure but part of an ongoing process to arrive at an agreement consistent with the debt threshold under the Debt Sustainability Agreement. We have made significant progress on debt restructuring negotiations, and the government of Ghana thanks bondholders for their support in this process,” the Ministry said.

At a press briefing on Saturday, Dr. Mohammed Amin Adam, the Minister of Finance, stated that the government’s negotiations with the creditors and commercial bondholders were ongoing.

The minister indicated that he was optimistic that the government would reach a deal with the creditors “soon.”

He added, however, that the negotiations would be in line with the fiscal and debt sustainability targets set by the IMF.

The IMF, in an X post, said Ghana had shown strong progress with the programme implementation.

The Fund said the next key step for the country was to reach an agreement with its official bilateral creditors on an MoU consistent with the terms agreed in January 2024.

The Fund said it looked forward to the government's continued efforts to reach an agreement with all creditors in line with programme parameters.