The International Monetary Fund (IMF) has issued a cautionary statement with respect to Ghana Eurobond restructuring, indicating that Ghana’s three bailout packages could face jeopardy if the country fails to secure a fair restructuring deal with Eurobond holders
Despite efforts by the Finance Ministry to implement a domestic restructuring program, challenges have arisen, drawing criticism from various stakeholders. While initial hopes were pinned on smooth progress following creditor assurance from the official creditor committee, including China, obstacles persist.
During an official visit to Ghana and a meeting with President Akufo-Addo, Managing Director of the IMF, Kristalina Georgieva, underscored the potential risks faced by Ghana, drawing parallels to Zambia’s difficulties in unlocking full bailout packages.
THE MD OF THE INTERNATIONAL MONETARY FUND (IMF), KRISTALINA’S COMMENT – GHANA EUROBOND RESTRUCTURING
Georgieva highlighted the imperative for Ghana to navigate the Eurobond market with caution, emphasizing the critical nature of securing favorable terms in the restructuring process. With Ghana’s outstanding debt to Eurobond holders totaling approximately $13 billion, the stakes are high, and prudent negotiations are essential to safeguard the country’s financial stability and development prospects.
The sooner we do a great deal the better for the country. To do a deal that may actually reverse progress is not going to be good for the country. You cannot allow the Eurobond creditors to twist your arm. Why? Because you have done a very painful domestic debt restructuring, you have agreed in principle on debt restructuring with the official creditors of Ghana under certain conditions. The deal with the Eurobond has to be a fair deal vis-a-visa what was already done otherwise we risk seeing what happened in Zambia,” she remarked.
