Don't let Eurobond holders twist your arm or you will become like Zambia - IMF MD warns Ghana

The International Monetary Fund (IMF) has warned Ghana against allowing her arm to be twisted by Eurobond holders as they negotiate the restructuring of some $13 billion.

At a meeting with President Akufo-Addo during an official visit to Ghana, IMF Managing Director Kristalina Georgieva warned that Ghana may suffer severe setbacks similar to the case in Zambia, which has difficulties unlocking the full bailout package.

"The sooner we do a great deal, the better for the country. To do a deal that may actually reverse progress is not going to be good for the country. You cannot allow the Eurobond creditors to twist your arm," she said.

The reason, she explained, is "because you have done a very painful domestic debt restructuring. You have agreed, in principle, on debt restructuring with the official creditors of Ghana under certain conditions.

"The deal with the Eurobond has to be a fair deal vis-à-vis what was already done. Otherwise, we risk seeing what happened in Zambia."

She urged President Akufo-Addo to keep defending his country's interests "because we are climbing a mountain, and we are doing quite well. We are not yet at the top. We need to keep climbing, so there's a radiation of responsibility we need to complete with private creditors but also complete defending the interests of the country."