Ghana to reach 'agreement in principle' with Eurobond holders by December – Ofori-Atta

Minister of Finance, Ken Ofori-Atta has expressed optimism over Ghana’s ability to conclude debt restructuring talks with external creditors by the end of December this year.

He said discussions have so far been progressive therefore an agreement in principle should be expected soon enough.

“Discussions have been ongoing with creditor groups and their representatives. We have received scenarios from both bondholder groups including scenarios received last week from the international bondholders’ group.

“We are currently reviewing these scenarios and hope to converge towards a solution that respects the need for debt relief and is compliant with the Comparability of Treatment constraints,” he mentioned.

Ken Ofori-Atta also noted that extensive negotiations are being tailored to fit Ghana’s debt targets under the joint International Monetary Fund/World Bank Debt Sustainability Framework.

“The objective of the programme is to reach an agreement with the Steering Committee of the bondholders’ groups that respects Ghana’s need for debt relief in line with its Debt Sustainability Analysis and the principle of Comparability of Treatment.

An agreement in principle on the financial parameters of the bilateral debt treatment is expected to be reached. An MoU is then to be signed between official creditors and the Republic of Ghana, formalizing the agreement in principle on the debt treatment,” he said.

Meanwhile, the government expects to reach an agreement in principle with the Official Creditor Committee (OCC) by early November 2023.

The minister added that after agreements are concluded, the terms will be signed with each creditor reflecting the terms agreed upon by the OCC.

SSD/MA

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