Ghana Surprises Investors by Suspending Debt Payments
- Suspension is ‘interim measure’ to stabilize finances
- Ghana has staff-level accord with IMF for $3 billion program
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Ghana suspended interest payments on its external debt, catching bondholders by surprise ahead of restructuring talks aimed at unlocking an International Monetary Fund bailout.
The West African nation on Monday suspended payments on $13 billion of eurobonds, as well as commercial loans and most bilateral obligations pending an agreement with creditors, the Ministry of Finance said in an emailed statement. The unilateral move stands to complicate negotiations with creditors that were set to start formally within days.