Skip to main content

Ghana to restructure GHS 123bn domestic debts to qualify for next $600m IMF tranche


Ghana is in urgent need of securing new terms for an additional GHC123 billion (US$11.18 billion) domestic debt to fulfill the requirements for the next tranche ($600m) of the US$3 billion IMF loan, as the country grapples with its most severe economic crisis in decades.

To meet the deadline set by the International Monetary Fund (IMF), Ghana is focused on restructuring its domestic debt and engaging in negotiations with external creditors. The debt includes domestic dollar bonds, cocoa bills, pension funds, and amounts owed to the central bank.

In February, the country completed the first phase of its domestic debt exchange, with an impressive 85% of eligible bondholders participating. However, attention has now shifted towards securing new terms for the restructuring of the remaining debt by the end of June.

Meanwhile, the Government has reached an agreement with banks to restructure GHC15 billion (US$1.36 billion) worth of locally issued US dollar bonds and cocoa bills. Sources within the finance ministry and a bank holding some of the bonds revealed that the government and lenders have agreed to convert GHC6.9 billion of domestic US dollar bonds into two term loans at lower interest rates.

Additionally, GHC8.1 billion worth of cocoa bills will be transformed into a new bond carrying a yield of 12%. However, some banks are reportedly holding out for a 13% yield, indicating ongoing negotiations. It is worth noting that the most recent cocoa bill issued in February 2023 bore a significant yield of 32.22%.

The restructuring agreements with both local and external creditors are crucial steps for Ghana to stabilize its economy and secure the next tranche of the IMF loan. The government is navigating challenging negotiations to find mutually acceptable terms that address its debt burden while ensuring the sustainability of its financial situation. 
 

Successfully obtaining new terms for the debt restructuring will be instrumental in Ghana’s efforts to alleviate its economic crisis and pave the way for much-needed financial stability and recovery.

Comments

Popular posts from this blog

UK-Ghana Trade & Investment Summit: Trade Resource Centre to help businesses maximise UK-Ghana trade opportunities

 In a significant boost to UK-Ghana trade and investment relations, the UK-Ghana Chamber of Commerce (UKGCC), in partnership with the UK-Ghana Jobs and Economic Transformation (JET) Programme, has launched the UK-Ghana Trade Resource Centre, a practical market-access platform designed to help businesses identify opportunities, navigate export requirements and build commercial partnerships between Ghana and the United Kingdom. The UK and Ghana enjoy strong trade relations, with total bilateral trade reaching approximately £1.6 billion in the year to Q1 2026. Yet, despite this progress, significant untapped opportunities remain for businesses in both countries. The Trade Resource Centre has been established to help bridge information gaps, connect businesses with the right partners, and support firms to take greater advantage of opportunities under the UK-Ghana Trade Partnership Agreement. The launch formed one of the major outcomes of the UK-Ghana Trade & Investment Summit 2026,...

NESCAFÉ Launches Real Vibes Text & Win Promo to Reward Coffee Consumers Across Ghana

 NESCAFÉ has launched the Real Vibes Text & Win Promo, an exciting consumer promotion designed to reward loyal coffee lovers and bring the brand’s My Coffee, My Vibe experience even closer to consumers across the country. Running from September to December, the promotion gives consumers the opportunity to enjoy their favourite NESCAFÉ coffee while standing a chance to win exciting prizes, including phones, motorcycles, airtime and the ultimate grand prize—an electric SUV. Speaking at the launch, Lily Ntim, Category Development Manager for NESCAFÉ, said the promotion reflects NESCAFÉ’s commitment to creating, rewarding and memorable experiences for consumers. “Today, we are excited to introduce the NESCAFÉ Real Vibes Text & Win Promo, a campaign designed to bring the My Coffee, My Vibe experience even closer to our consumers,” she said. She added that the campaign is not only about prizes, but also about celebrating the everyday moments consumers enjoy with their coffee. “T...

Ghana Home Loans

With interest rates declining, a more liquid environment and a macroeconomic stability, mortgage financing is expected to see an ease of credit. And Ghana Home Loans being a leader in this industry is expected to lead the way. Ghana Home Loans (GHL), a leader in home mortgage, continues to be the frontier in fulfilling dreams of many Ghanaians in homeownership. Since starting business in 2006, it has also provided many existing homeowners with Equity Release mortgages to support their businesses, pay educational fees, improve their properties, or simply pursue other personal hobbies and interests. Ghana Home Loans is a mortgage finance institution which operates under Bank of Ghana’s supervision as a non-bank financial institution. At present, the Company remains the only such institution that focuses exclusively on the provision of mortgage product. Through the Home Completion mortgage and Home Construction mortgage products, Ghana Home Loans has enabled many qualified applican...