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05.02.2009 Business & Finance

Ghana will not default on Eurobond

By Reuters

Ghana's new administration does not intend to default on repayments of the $750 million Eurobond the West African country issued in 2007, its transitional finance committee said late on Tuesday.

The administration said last month it was “broke” after spending by the previous government pushed up the fiscal deficit, raising concerns among investors holding the Eurobond.

“We are committed to making good our obligations,” said Moses Asaga, a former deputy finance minister who sits on the three-man committee.

Ghana intends to reduce its budget deficit to 9 percent of Gross Domestic Product (GDP) in the first year of John Atta Mills' presidency, down from 13.5 percent in 2008, Asaga told Reuters.

Source: Reuters