Ghana Seeking Relief from EuroBond Creditors
Ghana defaulted on its #EuroBond payments in December 2022 as inflation soared due to the double crisis of the COVID and Ukraine. Previously, the Government of Ghana has issued #EuroBond to the tune of USD 13 billion to finance its economy.
In the wake of the debt crisis, the Ghana Finance Minister Ken Ofori-Atta was replaced by Amin Adam on 14 February 2024. Ghana’s #EuroBond price issued by Ghana slipped upon this announcement, since creditors were worried about the potential impact over the restructuring process.
The good news is that the Ghanaian economy is showing signs of recovering since it secured a USD 3 billion loan from the IMF in 2023.It also secured a deal on a USD 5.4 billion debt tranche held by China and France.
Financial analysts expet the Government of Ghana will exchange old bond for new notes. However, creditors have expressed that interest payments be linked to GDP growth rate in order to benefit from the rebound of the economy.