Haircut

17 Oct

External Debt Restructuring: Eurobond Holders To Face Nominal ‘Haircut’ Of Between 30-40%

wontumionlineBusinessFinance Minister, Haircut

Finance Minister, Ken Ofori-Atta, has stated that Eurobond holders may face a nominal haircut of between 30% and 40% as part of the restructuring of the external debt. According to him, coupons may also not exceed 5% with final maturities of not more than 20 years. “So in our indicative scenario, the restructuring terms for bondholders involve maybe a nominal haircut between 30 and 40%, looking at maybe coupons of not more than 5% and final maturities of not more than 20 years are sort of the contours of what we are discussing and analyzing”. Updating investors about the state…

27 Feb

Ghana’s Debt-To-GDP To Decline To About 58% By 2026 Based On 30% Haircut On External Debt – S&P

wontumionlineBusinessdebt, debt to GDP, fiscal consolidation, Haircut

Ghana’s debt to Gross Domestic Product (GDP) ratio (excluding guaranteed debt) would decline to about 58% of GDP by 2026, rating agency, S&P Global has predicted. This is from about 80% of GDP at year-end 2022, based on an exchange rate of ¢10.15 to $1 versus current spot exchange rates of about ¢12.86. However, this is based under a scenario of a 30% haircut on external debt and assuming that the dollar value of Ghanaian GDP over the next three years remains close to last year’s figure of $67 billion — calculated at average exchange rates. This, it said, assumes…