PULSE NG
- Half of Ghana’s government’s $7 billion debt to the central bank was written off.
- The remaining balance was replaced with a 15-year bond at a reduced rate.
- Debt restructuring a key step for Ghana’s eligibility for a $3 billion IMF bailout loan, aims to lower overseas debt payments by $10.5 billion over three years.
Half of Ghana’s government’s $7 billion debt to the country’s central bank has been wiped off, and the remaining balance has been replaced with a 15-year bond with a reduced rate.
This is according to a report by the American news agency Reuters, which cites three sources with direct knowledge of the transaction.
The most recent action is a component of the West African country’s effort to restructure its domestic debt, which is necessary to be eligible for the next installment of a $3 billion International Monetary Fund (IMF) bailout loan. Ghana now wants to concentrate on talks with foreign creditors.
In February, Ghana finished the first round of domestic debt restructuring by exchanging local currency bonds held by 85% of eligible holders for new bonds with longer maturities and lower interest rates. The central bank exchanged 17 billion cedis as part of this…
