Ratings agency, Fitch, expects Ghana to conclude its external debt restructuring by June 2024.
In its latest assessment of Ghana, the UK-based firm said all things being equal, Ghana would conclude its external debt restructuring programme with the Eurobond holders by June 2024.
The nation reached an agreement with its bilateral creditors in January and is expected to agree on terms of restructuring with the commercial creditors by the end of the second half of 2024.
Fitch said the debt restructuring terms with Ghana’s official creditors would not significantly affect the banking sector.
It also pointed out that banks have limited exposure to Eurobonds and are likely to have taken impairments for these already.
“Fitch expects Ghana to conclude its external debt restructuring in 1H24. Ghana recently agreed restructuring terms with official creditors but we do not expect this to significantly affect the banking sector. Banks have limited exposure to Eurobonds and are likely to have taken impairments for these already”.
Again, it mentioned that the loan quality of banks is still at risk from the macroeconomic fallout due to the sovereign default, but the risk to the banking sector is limited by the small size of the loan.
However, it stressed that capitalisation is highly sensitive to Ghana’s local-currency creditworthiness as exposure to local-currency government bonds is high relative to capital.
Latest Stories
-
About 95% of PWDs in Obuasi have source of livelihood – MCE
8 mins -
Immigration Service intercepts 54 gallons of fuel
10 mins -
Election 2024: Roman Fada selected as flagbearer for Ghana Freedom Party
19 mins -
Bawumia to launch Ghana’s credit scoring system on Nov. 7
22 mins -
Alan to combat galamsey with strategic youth-centred business model
26 mins -
Agona Swedru chiefs commit to ending child marriage within their jurisdiction
39 mins -
Sunyani Traditional Council endorses Bawumia – NAPO government
42 mins -
Adutwum defends double track in Free SHS, citing research and positive outcomes
47 mins -
‘Prevent and condemn illegal pressure on Judiciary’ – AG to GBA
51 mins -
Mahama alleges biased development allocation by NPP
53 mins -
Do not rely solely on foreign investments for your operations, business told
57 mins -
Boeing strike ends as workers accept new contract
2 hours -
GAF will not relent in its quest to counter external threats – GOC Southern Command
2 hours -
Election 2024: Bawumia reiterates commitment to promote sustainable mining practices
2 hours -
Ensign Global College promotes health and community well-being at Ngmayem Festival 2024
2 hours