debt restructuring

Finance Minister Dr Mohammed Amin Adam has disclosed that the government is close to completing its debt restructuring programme with only $2.7 billion of commercial bilateral creditor debt remaining to be restructured. In an interview on the IMF Today programme during the Annual IMF/World Bank meetings in Washington, DC, he noted that significant progress has been made in restructuring the outstanding debts. He emphasised that once the commercial creditors’ debt is restructured, Ghana can consider the entire process completed. “If Ghana can conclude this outstanding commercial creditor debt, then we can say that the entire process has been completed,” the minister said.…

The government has sent an offer to private banks and contractors who it owes about $2.8 billion for a possible restructuring of the debt. After successfully negotiating a deal with its bilateral and Eurobond holders, the government has now turned its attention to private banks and suppliers. The negotiations with these creditors who form part of the country’s commercial creditors are aimed at providing some debt relief to the country. Responding to a question from the Graphic Business at its monthly economic update, Minister of Finance Dr Mohammed Amin Adam said the government has sent an offer through its advisors.…

Economist and Director of Research at the Danquah Institute, Dr Frank Bannor says the debt restructuring was important to boost the economy. His remarks follow an agreement where Eurobond holders are expected to forego about $4.7 billion owed them by the Government of Ghana. This is part of an agreement reached with the Bondholders in restructuring a $13.1 billion debt. The term sheet covering the Eurobond deal, showed that the Bondholders will also provide a cash flow of $4.4 billon, during the period under the International Monetary Fund (IMF) programme. The Bondholders have also agreed to a 37 percent haircut…

Ghana has made “significant progress” in debt-restructuring negotiations and the latest snag that sent its Eurobonds tumbling on Monday will be ironed out in further talks with bondholders, Finance Minister Mohammed Amin Adam said. Negotiations that started mid-March resulted in an interim deal last week with international investors holding about 40% of Ghana’s $13 billion of defaulted Eurobonds. Still, Adam conceded in an interview that the agreement breaches the International Monetary Fund’s debt sustainability parameters “slightly.” “This is not a failure but an ongoing process to agree consistent with debt thresholds” under the IMF’s debt sustainability analysis, or DSA, Adam…

Over the past weeks, there is some growing discontent among the general public with the imposition of 21 per cent Value Added Tax (VAT) on end users of electricity in the country. This comes on the back of an almost 70 per cent increase in especially electricity tariffs since last year. And all these have happened within the context of our own programme to the International Monetary Fund (IMF) on how we hope to get ourselves out of the economic quagmire we find ourselves in currently. To think that the investing public have had a” haircut” of 30 per cent…