Ghana is poised to begin talks with domestic bondholders on a restructuring of its local currency or cedi debt.
This is part of the nation’s plan to secure a $3 billion loan from the International Monetary Fund.
According to Bloomberg, the country’s Eurobonds extended their declines in trading.
One of the key requirements for a Fund program is for the nation to restructure its debt.
Banks and pension funds that are among the country’s biggest debt investors are preparing to engage in discussion on debt restructuring.
The debt reform could lead to an extension of maturities and cuts on principal and interest payments.
The restructuring is part of a debt-sustainability plan required by the IMF.
This will include part of the $19 billion Ghana has in outstanding local debt.
Ghana’s official negotiation with IMF starts on September 26, 2022
Official negotiations between the Government of Ghana and the International Monetary Fund (IMF) for an economic program are expected to take off from Monday, September 26, 2022.
This is what Joy Business has picked up from persons with knowledge of the current discussions between the government and the IMF.
