Ghana has achieved a major breakthrough in its economic recovery efforts by successfully restructuring US$13 billion of its Eurobond debt.
Finance Minister Dr. Mohammed Amin Adam announced this significant milestone during a press conference in Accra.
Dr. Adam emphasized the importance of this achievement, stating, “We are poised to turn the page on our restructuring journey and embark on a new chapter of economic resilience and prosperity.”
The restructuring is part of a comprehensive debt management strategy launched in December 2022, following the completion of the Domestic Debt Exchange Programme (DDEP) and an agreement with the Official Creditors Committee (OCC).
The exchange offer, launched in September 2024, garnered overwhelming support from bondholders. Over 98 percent agreed to the terms, far exceeding the required 65 percent threshold.
Investors were presented with two options: the PAR Option, which offered no reduction in principal but lower interest rates and a longer repayment period until 2037, and the DISCO Option, which included a 37 percent reduction in principal, higher interest rates, and a shorter repayment period from 2029 to 2035.
This restructuring has resulted in significant financial benefits for Ghana. It has led to a US$5 billion reduction in nominal debt value and US$4.3 billion in debt service savings during the IMF program period. Additionally, the average interest rate on the bonded debt has decreased from over 8 percent to less than 5 percent.
These outcomes are expected to help reduce Ghana’s debt-to-GDP ratio from a potential 109% to 55% by 2028, aligning with IMF targets.
The deal also includes clauses aimed at ensuring responsible debt management and transparency, setting a new standard for such agreements.
The successful restructuring is anticipated to normalize Ghana’s relationships with rating agencies and international markets.
It demonstrates the government’s commitment to restoring financial stability, as evidenced by the swift completion of the Eurobond exchange in less than nine months, the minister noted.
While acknowledging the challenges faced during what he described as a “painstaking journey,” Dr. Adam expressed gratitude to all parties involved, including bondholders, advisors, and government technical teams.