The government of Ghana has officially resumed payments on its Eurobond debts after successfully completing a debt exchange program with bondholders. The Ministry of Finance has made a total payment of $520 million, which includes a $120 million consent fee for bondholders who accepted the exchange terms.
The debt service, which began last Friday, includes $320 million in coupon payments that had been frozen since the government’s debt service suspension in 2022. Ghana successfully restructured $13 billion in Eurobond debt with an impressive 98% participation rate from bondholders, enabling the resumption of payments.
Regular coupon payments are set to begin in January 2025, with the next scheduled for July 2025. The Bank of Ghana has confirmed that there are sufficient dollar reserves to support these payments.
Additionally, Finance Minister Dr. Mohammed Amin Adam announced the establishment of a Sinking Fund to help manage the fiscal pressures associated with these repayments. Ghana is also expected to start servicing debts to its bilateral creditors beginning in 2026.
Source: DEW360.NET
JOIN OUR WHATSAPP CHANNEL:
