Authorities is about to launch the extremely anticipated Eurobond Debt Change Programme subsequent week, in line with sources accustomed to the plan.
The Finance Ministry is aiming to restructure roughly $13 billion of Eurobond holders’ money owed. The Eurobond Debt Change Programme is predicted to run for 10 days.
Below this programme, the Ministry of Finance will invite buyers to trade their present bonds for brand new ones as a part of the restructured debt.
This follows an settlement in precept reached with Eurobond holders in June 2024, with the prospectus now prepared for launch.
Key Phrases of the Eurobond Provide:
As per the June 2024 settlement, Eurobond holders are anticipated to forgo about $4.7 billion owed by the Authorities of Ghana. That is a part of the trouble to restructure a $13.1 billion debt.
The time period sheet for the Eurobond deal signifies that bondholders will even present a money circulation of $4.4 billion throughout the interval beneath the Worldwide Financial Fund (IMF) programme.
The federal government is proposing two choices for the bondholders: the P.A.R. and Disco Choices. Traders choosing the Disco possibility will obtain three new bond devices, whereas the P.A.R possibility can have a cap of as much as 1.6 billion cedis.
Moreover, bondholders have agreed to a 37% haircut on their curiosity and maturity, which might be mirrored within the supply.
The federal government will even embody a Non-Monetary Time period, described as a “most favoured creditor clause,” to make sure that different collectors don’t obtain higher web current worth phrases.
IMF/World Financial institution Endorsement:
The Worldwide Financial Fund (IMF) has accredited the deal, noting that the phrases align with Ghana’s Debt Sustainability Programme. In its workers report on Ghana, the IMF beneficial that the nation finalize the Exterior Debt Restructuring earlier than the December elections.
Ghana can also be engaged on reaching an settlement with bilateral industrial collectors as a part of its plan to restructure its complete exterior money owed.
World Financial institution Nation Director Robert Taliercio O’Brien, in an interview with Pleasure Enterprise, expressed optimism {that a} well timed settlement with exterior collectors will assist within the financial restoration.