Ghana’s bilateral lenders through the Official Creditor Committee (OCC) have approved government’s deal with Eurobond holders on proposed terms to restructure about $13.1 billion debt.
The Ministry of Finance in a statement released on July 8, 2024 announced that “it has received a formal confirmation from its OCC that the Agreement in Principle reached with representatives of Eurobond holders is consistent with the Comparability of Treatment principle”.
This is coming after the government earlier this month, announced that it has reached an “Agreement In Principle” with the Eurobond holders to restructure the $13.1 billion debt owed the bondholders.
The move is coming at a time that the International Monetary Fund (IMF) has also said the deal with the bondholders is in line with the Fund programme to enable the country reach sustainable debt levels by 2028.
This was after the IMF board met to pass Ghana on the second review under the programme.
The Executive Board in a statement noted that “The agreement on the debt treatment is consistent with the programme parameters, provided the financing assurances are necessary for the second review under the ECF Arrangement to be completed”.
Background
Under the OCC Framework for debt restructuring, there must be a Comparable Treatment of Ghana’s Debts.
This is to ensure that, whatever terms that Government of Ghana reaches with the bilateral creditors, the same should be extended to other creditors.
The Ministry of Finance was therefore required to send the terms reach under the agreement with the bilateral creditors, to the official creditors for their acceptance.
What’s next for Government?
Based on the development, the Ministry of Finance can now go ahead and launch the “Debt Exchange Programme” for the Eurobond Holders to restructure the debt.
However, the bondholders must first move to fully accept the offer, despite the Agreement in Principle reached.
The Minister of Finance Dr. Mohammed Amin Adam at a recent press conference revealed that the government is hoping to launch the offer for the Eurobond Holders in July 2024 and should end in September.
Some market analysts have argued that the current challenges with the Ghana Cedi, can be linked to delays in signing a deal with the Eurobond Holders on restructuring the $13.1 billion debt.
Latest Stories
-
Coach Kweku Agyeman rallies Vision FC ahead of Hearts of Lions clash
22 seconds -
UG Corporate Football League: College of Humanities seeks redemption against GAF
3 minutes -
Retraction: Public Services Commission did not reverse promotion of 4 Forestry Commission Directors
3 minutes -
Ahead of The 2025 Budget (1)- The need to curb excessive tax exemptions
4 minutes -
GFA is the best organised sports institution you can trust – Kurt Okraku
20 minutes -
GHS reassigns Regional Health Directors
23 minutes -
‘We’ve been preparing’ – Heart of Lions fired up for Vision FC on GPL return
33 minutes -
Afram Plains MP pledges commitment to transform through strategic socio-economic development
40 minutes -
Medeama happy with GPL return, promises strong squad against Bechem
54 minutes -
‘Feels good to be back’ – Bechem United on GPL resumption
1 hour -
Ivorian Olympic Committee honours Rugby Africa President Herbert Mensah
1 hour -
Today’s Front pages: Friday, March 7,2025
2 hours -
We’ll ensure all unfairly dismissed workers are reinstated – Ntim Fordjour
2 hours -
Asenso-Boakye criticises Mahama’s stance on road infrastructure debt in parliamentary debate
2 hours -
Ghana By Bike embarks on 300km ride to donate bicycles to school children
2 hours