The Government of Ghana has encountered a setback in its efforts to restructure approximately $13 billion of its external debt, as reported by Reuters.
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Citing a statement from the government on Monday, April 1, 2024, the country failed to secure a deal with two groups of international bondholders for a debt treatment.
The IMF has expressed concerns about the proposed deal, stating that it would not meet debt sustainability parameters. Additionally, a ‘regional’ bondholder group, which includes African banks, has rejected a portion of the proposed deal by the Ghanaian government.
In response, the government emphasized its commitment to finding solutions aligned with IMF program parameters and reaching a mutually acceptable agreement.
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Ghana faced severe economic challenges in December 2022 when it defaulted on payments for most of its $30 billion external debt. Since then, the country has been excluded from international capital markets, resorting to domestic treasury bill markets for borrowing.
Currently under its 17th IMF bailout program, Ghana recently reached a staff-level agreement with the IMF Mission team on a second review, clearing the path for a third installment of bailout funds totaling $360 million.
During a joint press conference in Accra, IMF Mission Chief to Ghana, Stephane Roudet, urged Ghanaian authorities to secure a deal with commercial and bilateral creditors to facilitate approval for the next disbursement by the IMF Management and Executive Board.
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