Ghana continues to engage in negotiations with international bondholders regarding the restructuring of approximately $13 billion of its external debt, without having reached a definitive agreement as of yet. The office of the Finance Minister reaffirmed this on Monday, April 15th, indicating that while an interim agreement had been achieved, discussions with bondholders remain ongoing. Reuters has reported Ghana’s inability to secure a viable debt deal with two bondholder groups.
These negotiations aim to align with debt thresholds outlined by the IMF’s debt sustainability targets. This setback marks a significant challenge for Ghana, occurring over a year after the nation defaulted on the majority of its $30 billion external debt.
The bulk of Ghana’s external debt, totaling 76%, is held by commercial lenders, including bondholders such as BlackRock, alongside multilateral development banks, the Paris Club, and China. The ongoing debt crisis exacerbates the hardships faced by Ghanaians amid currency depreciation against the US dollar and soaring inflation. In January, the IMF board approved a $600 million disbursement for Ghana under its loan program.
Dr. Mohammed Amin Adam, Minister for Finance, stated on April 14th that the government has implemented adequate control and monitoring mechanisms to ensure the fulfillment of key targets under the IMF-supported program, notwithstanding the challenges of 2024 being an election year. Leading Ghana’s delegation, the Minister is participating in the IMF/World Bank Spring Meetings held in Washington DC.
