Economic recovery: We’ve accomplished what everyone said was impossible – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has hailed Ghana’s recent economic recovery, declaring that the country has achieved what many thought was unattainable. This announcement follows Ghana's successful re-entry into international financial markets after completing a significant restructuring of $13 billion in Eurobonds.

On June 24, 2024, the Republic of Ghana and the Ad Hoc Group of International Bondholders reached a preliminary agreement to restructure the nation’s Eurobonds. The agreement received approval from the International Monetary Fund (IMF), which deemed it compatible with program guidelines and compliant with the Official Creditor Committee's requirements for equitable treatment.

With the support of the Eurobond Holders Committee, Ghana initiated a consent solicitation on September 5, 2024, seeking approval from all bondholders for its restructuring proposal. Over 90% of bondholders voted in favor of the deal, which has now been successfully concluded.

The settlement and issuance of new debt instruments will take place on October 9, 2024, following the World Bank longstop date of October 7, 2024. On this day, the old bonds will be exchanged for new securities under revised terms, with the World Bank executing payments by October 30, 2024. Additional details on the technical processes following the issue date, including holding periods, are provided in the official documentation.

“Today, our economy has turned a corner,” President Akufo-Addo remarked. “This landmark achievement marks a new phase in Ghana’s economic recovery, putting the country back on a sustainable debt path and restoring investor confidence. We have resolved Ghana’s debt overhang decisively, allowing us to stabilize our finances and focus on implementing an ambitious reform program to improve the well-being of our people. We are grateful to our bondholders, the IMF, and our official creditors for their support and collaboration in reaching this solution.”

The successful restructuring will reduce Ghana’s debt stock by $4.7 billion and provide cash flow relief of approximately $4.4 billion over the next two years, according to Mohammed Amin Adam, Ghana’s Minister for Finance and Economic Planning. He noted that the deal has already had a positive impact on the country’s macro-financial outlook, reducing inflation and boosting investor confidence. The nation’s economic growth projections have also improved, with Q2 2024 recording a 6.9% GDP growth—the highest in five years.

The government extended its sincere appreciation to the Steering Committee of the Ad Hoc Creditor Committee of International Bondholders and their advisors, Rothschild & Co and Orrick, Herrington & Sutcliffe LLP, as well as the Steering Committee of the Creditor Committee of Regional Bondholders and their advisors, Renaissance Capital Africa, for their constructive and sustained engagement throughout the restructuring process.

“We also thank our advisors, Lazard Frères and Hogan Lovells, for acting as our financial and legal advisors, respectively, and Algest for providing strategic guidance throughout this journey,” a statement from the presidency concluded.