Ghana’s plan to suspend debt repayments on its eurobonds, commercial term loans and most of its bilateral debt is a “potential repudiation or moratorium”, as per the Credit Derivatives Determinations Committee (CDDC). However, the committee said that the suspension does not yet constitute a ‘credit event’ as Ghana had not missed payments on its bonds when the panel was asked to evaluate the situation. Ghana is currently in the process of negotiating a restructuring plan for its local and external debt. Earlier this week, analysts noted that the nation’s restructuring favors its domestic creditors over its offshore creditors.
Ghana’s dollar bonds were trading stable at 36-39 cents on the dollar.
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