In the midst of an economic crisis, Ghana appeals to banks for debt restructuring.

In the midst of an economic crisis, Ghana appeals to banks for debt restructuring.
In the midst of an economic crisis, Ghana appeals to banks for debt restructuring.

In order to meet the IMF deadline and obtain more financial support, the nation is looking for fresh conditions for $11.18 billion in domestic debt.
When debt is restructured, loans and bills are converted to new bonds with lower interest rates.

Three people with knowledge of the conversation report that Ghana and banks have reached an agreement to restructure locally issued U.S. dollar bonds and cocoa bills totaling 15 billion Ghana cedi ($1.36 billion).

The West African nation is searching for new conditions for the restructuring of its domestic debt by the end of June in order to fulfill an International Monetary Fund (IMF) deadline and concentrate on talks with foreign creditors.

After the first phase of Ghana’s domestic debt exchange, which was finished in February, saw participation from 85% of eligible bondholders, the nation now needs new terms for an additional 123 billion Ghana cedi ($11.18 billion) in order to be qualified for the following installment of a $3 billion IMF loan to help it deal with its worst economic crisis in a generation.

The debt consists of commitments to the government, pension funds, domestic dollar bonds, and bills for cocoa. Cocoa bills were produced in order to meet the short-term financial needs of the country’s cocoa regulator, Cocobod.

 

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