Eurobond holders reduce Ghana’s debt by $5bn – Finance Minister --[Reported by Umva mag]

Ghana’s Finance Minister, Dr Moham­med Amin Adam, says that Ghana has successfully completed the restructur­ing of the $13 billion owed to Eurobond holders with more than 98 per cent investors participation in the country’s consent solicitation, reducing the country’s total debt by $5 billion.

The minister told a news conference in Accra that more than 98 per cent participation was significantly higher than the 65 per cent thresh­old from bondholders following the launch of the Exchange Offer and Consent Solicitation in Sep­tember 2024.

He explained that Ghana t would exchange the $13 billion in Eurobonds for new bonds in the coming weeks.

According to the minister, with the completion of the Eurobond debt restructuring, the government has completed the restructuring of over 90 per cent of the country’s external debt.

“The agreement with bondhold­ers has brought significant relief, including a 37 per cent reduction in the nominal value of Ghana’s debt, equivalent to a $5 billion reduction, and $4.3 billion in debt service sav­ings, and the average interest rate on the bonded debt has decreased from over 8 per cent to less than 5 per cent,” the report by The Ghanaian Times quoted Dr. Adam as saying.

He added that Eurobonds constitute a substantial portion of Ghana’s external debt.

“This milestone represents a pivotal step in our external debt restructuring efforts. More importantly, its successful completion will significantly con­tribute to restoring Ghana’s debt sustainability,” he said.

GIK/APA

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