Ghana seeks to plod up debt restructuring negotiations

Ghana seeks to plod up debt restructuring negotiations
© Reuters. FILE PHOTO: Customers stumble on items at Makola market in Accra, Ghana, June 15, 2015. REUTERS/Francis Kokoroko/File Photo

By Maxwell Akalaare Adombila and Christian Akorlie

ACCRA (Reuters) -Ghana wishes to plod up last debt restructuring negotiations, its finance minister said on Tuesday, because the govt. pushes for a deal to transform over $13 billion of worldwide bonds.

The West African nation has been overhauling its debts as it tries to emerge from its worst financial crisis in a generation with the wait on of a $3 billion World Financial Fund (IMF) programme.

The govt. reached a deal in belief in January to restructure $5.4 billion of loans with legitimate creditors. It has since started formal talks with one bondholder community below non-disclosure agreements, Reuters reported about two weeks within the past, citing sources aware of the be troubled.

Finance Minister Mohammed Amin Adam urged a news convention that the govt. had got counter-proposals from two bondholder groups that would be assessed.

“Authorities has got counter-proposals on the debt therapy scenarios from the two bondholder groups,” he said.

“In the coming weeks, govt and our advisors will open in depth discussions with bondholder representatives to contrivance restructuring engagements.”

The minister said Ghana’s govt had concluded negotiations with self reliant energy producers (IPPs) and would be signing an settlement with them over the following two to a pair weeks.

The IPPs had rejected a proposal to restructure $1.58 billion in arrears owed them by the suppose. They got an intervening time charge provide in July, permitting them to proceed working with the govt. in opposition to a eternal resolution to the debt mission.

“The signing of this settlement will allow us to unfold the arrears over some years, presumably 5 years, to provide us relief,” Adam said.

He added that the IMF became expected to head to Ghana for a 2nd review of its Extended Credit Facility-backed programme for 10 days from April 2.

The cocoa, gold and oil-producing nation defaulted on most of its $30 billion exterior debt in December 2022, after debt costs and inflation spiralled sharply bigger.

The central bank said on Monday that the inflation outlook had worsened a minute over the last two months and required shut monitoring.

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