Ghana Bondholders to Forgo About $4.7 Billion of Their Claims
- Ghana revamping debt to achieve sustainability under IMF rules
- Deal follows similar agreement between Zambia and creditors
Accra, Ghana.
Photographer: Ernest Ankomah/BloombergThis article is for subscribers only.
Ghana reached an agreement in principle with private creditors to restructure about $13 billion of debt, a key milestone in the West African country’s efforts to overhaul its loans. The nation’s bonds rallied.
Under terms of an accord announced on Monday, investors accepted nominal losses of 37% on their holdings, according to a statement issued by the advisers to an international creditor committee and the government.. Bondholders will forego $4.7 billion of their claims, while providing cash flow relief of about $4.4 billion during an International Monetary Fund loan program, it said.