Ghana Re-enters International Capital Markets After $13 Billion Eurobond Restructuring

Ghana has made a return to the international capital markets following the successful completion of a $13 billion Eurobond debt restructuring, Finance Minister Dr. Mohammed Amin Adam announced in Accra on Friday.

The move marks a crucial step in the nation’s efforts to restore financial credibility and access to global financing after a period of exclusion.

 

“We are back to the capital market,” Dr. Adam stated, describing the restructuring as a positive shift that would allow Ghana’s Eurobonds to resume trading immediately.

Despite the achievement, he cautioned that the government would take a measured approach before pursuing additional borrowing.

“That is a decision we are yet to make. In due course, we will announce to the world when we will take on further debt,” he added.

 

The debt restructuring is also expected to bolster Ghana’s chances of passing the third review under the International Monetary Fund (IMF) programme, currently underway. It further supports the government’s objective of reaching debt sustainability by 2028.

 

Ghana’s exclusion from international capital markets followed a tumultuous 2022, in which the fiscal deficit, exacerbated by the COVID-19 pandemic and the Russia-Ukraine conflict, led to unsustainable debt levels and a loss of investor confidence.

The successful Eurobond exchange, with significant investor participation, signals renewed optimism in Ghana’s financial future.

Source:norvanreports.com