Ghana anticipates return to domestic bond market in 2025 – Report

Following a two-year hiatus due to economic challenges, Ghana's finance ministry says the country anticipates re-entering the domestic bond market in 2025.

In a written response copied to Reuters and sighted by GhanaWeb Business, the ministry noted, "We anticipate re-entering the domestic bond market in 2025, following a two-year hiatus."

The finance ministry emphasised that the timeline was typical and was likely to be aided by "an improved macroeconomic environment, specifically inflation."

While Ghana's debt restructuring exercise has proven to be painful for many investors and the economy at large, the finance ministry believes that the exercise has restored debt sustainability.

The economic headwinds caused by the rising cost of living, high debt levels, and depreciation of the cedi against major trading currencies, among other factors, forced the government to seek financial assistance from the International Monetary Fund (IMF) under a three-year program.

As part of the conditions, Ghana had to undergo both domestic and external debt restructuring programs to restore debt sustainability.

Meanwhile, ratings agency Fitch has projected that Ghana is likely to face liquidity pressures in the coming years, specifically in 2025 and 2026, despite the restructuring of most of its debts.

Ghana's interest rate revenue ratio is also projected to be among the highest of Fitch's rated sovereigns, estimated at 29% in 2025 and 30% in 2026.

Fitch has indicated plans to move Ghana out of sovereign default from July 2025, following its anticipation of the country completing the external debt restructuring by the end of June 2025.

MA

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