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Debt Restructuring: Ghana’s deal with bondholders gets OCCs’ nod

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Ghana’s debt restructuring deal with Eurobond holders has won the approval of the official creditor committee.

The committee, representing the country’s bilateral lenders, communicated their seal of approval to the Ministry of Finance in a statement on Monday, July 8, 2024.

This agreement is confirmed to be consistent with the Comparability of Treatment principle.

This principle is part of the OCC’s Common Framework for Debt Restructuring, which mandates that Ghana’s debt owed to all external creditors under the restructuring scope must be treated comparably.

Quite recently, the country reached an agreement with Eurobond holders to restructure debts of about 13.1 billion.

The new agreement will see the Eurobond holders take a 37% haircut and also see a suspension of coupon rates until 2026.

To this effect, the deal with bondholders cancels $4.7 billion of Ghana’s debt and in addition, provides $4.4 billion of debt service relief.

The government, however, notes that it plans to continue active engagement with the Steering Committees to finalize the necessary documentation and move forward swiftly with the consent solicitation process.

The government also thanked its official partners as well as representatives from the two Bondholders’ Committees for their constructive engagement over the past weeks.

Source: Finance Ministry

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