Ghana is projected to emerge from sovereign default by July 2025, with Fitch Ratings expressing confidence that the country will finalize its external debt restructuring by the end of June 2025.
The UK-based ratings agency also anticipates that Ghana will complete its non-bond debt treatment before the close of 2024. These insights were shared during a Fitch webinar analyzing debt restructuring efforts in Ghana, Zambia, and Ethiopia.
Thomas Garreau, Associate Director for Europe, Middle East, and Africa Sovereign Ratings at Fitch, noted that political activities could affect timelines. “We expect the common framework restructuring to conclude in the first half of next year. However, elections could cause delays, which is why we project completion by mid-2025,” he explained.
Progress has already been made, with Ghana reaching an agreement in January 2024 with the Official Creditor Committee (OCC) on debt treatment terms. This was followed by a Eurobond exchange in October 2024, restructuring approximately $14.2 billion, including past-due interest.
The restructuring included a haircut equivalent to 6.2% of the country’s GDP. Additionally, Ghana’s interest payment obligations have been reduced significantly, amounting to 8% of projected 2024 revenue, 5% in 2025, and 4% in 2026.
These developments are expected to provide Ghana with fiscal relief and improve its financial outlook as the restructuring process nears completion.
SOURCE: JoyBusiness
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