Ghanaian News

Ghana begins negotiations with Paris Club and Eurobond holders in London

The Finance Minister, Ken Ofori-Atta, will from today (16 October) meet with Eurobond creditors to negotiate with them to agree to give Ghana debt relief.

A successful negotiation outcome to restructure an outstanding US$13 billion Eurobonds, together with favourable terms from bilateral creditors will prompt the International Monetary Fund (IMF) to approve the second tranche of US$600 million out of the US$3 billion support.

“What we are doing in London on Monday, is to meet with the various investors and to brief them on where we are with the fund which you know, we are on the right course,” Ofori-Atta told Asaase 99.5 Accra’s Nana Oye Ankrah in Marrakech, Morocco.

The Ghanaian delegation made up of officials of the finance ministry and the Bank of Ghana are already in talks with bilateral creditors, including China and Paris Club members, to get them to restructure US$5.4 billion.

Ghana is targeting a US$10.5 billion of debt service relief between 2023 and 2026 and if successful, the country will restructure two-thirds of its US$30 billion external debts.

Ofori-Atta reiterated the progress his team has made so far in meeting all requirements from the IMF. He said the Domestic Debt Exchange Programme was a difficult and sacrificial process.

“We have proved that we have stayed through to the cause, and therefore, the quantitative performance criteria, indicative target, and structural benchmark are good,” he said.

Ghana is aiming to restructure a total of US$5.4 billion owed bilateral creditors, including China and other Paris Club members, through the G20’s Common Frame process and US$14.6 billion owed Eurobond investors.

“So, all of that means speaking to investors to say that things are on the right course, we’ve done our part, it’s now up to you to also come to the table so that we have a restructured debt portfolio,” Ofori-Atta said as the government aims at completing all debt restructuring negotiations by the end of 2023.

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