AFRICA

IMF Objections Derail Ghana’s Efforts To Reach Debt Deal With Bondholders

Ghana’s attempts to restructure its $13 billion debt with international bondholders have hit a snag, the government announced on Monday, dealing a setback to its efforts to overcome default and economic challenges.

The International Monetary Fund (IMF) objected to the deal, citing concerns about its incompatibility with a debt sustainability analysis that sets parameters for how much debt a country can afford.

Additionally, the bondholder group rejected part of the proposed restructuring, including a “par option” aimed at preserving the bond’s original value with an extended maturity and reduced coupon.

Ghana defaulted on the majority of its $30 billion external debt in December 2022, following a surge in debt costs and inflation after being shut out of global markets.

Melissa Enoch

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Melissa Enoch

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