This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Ghana’s terms of restructuring for its local bonds is said to be favoring domestic creditors over its offshore creditors. Ghana commercial banks agreed to the government’s proposal of a 5% coupon payment in a domestic debt swap program and also agreed on a single coupon rate of 9% for each of 12 new bonds. Carlos de Sousa, a money manager at Vontobel Asset Management said,”I see a positive and a negative side… On the positive side, the government is showing flexibility to reach an amicable solution with domestic bondholders instead of imposing a restructuring. On the negative side, if the domestic debt restructuring is too modest, then a larger burden may have to fall on external creditors”. Ghana is currently in the process of restructuring most of its public debt of ~ $39bn as of end-September, in order to qualify for a $3bn IMF bailout.
Separately, Ghana’s dollar bond maturing 18 January 2026 was downgraded to D from CC by S&P after the country failed to pay about $41mn in interest.
Ghana’s dollar bonds were slightly higher by 0.6-1 point at 37-39 cents on the dollar.
For the full story, click here