Ghana's Debt Restructuring Plan Seeks Deep Haircuts, Disappointing Investors

Ghana proposed a debt restructuring plan with 30-40% haircut on principal which disappointed investors, causing bonds to tumble.

The plan aims for a maximum 5% coupon rate and 20 year maturity on new bonds issued.

Analysts estimate the recovery value could be as low as $31.5 based on the proposal.

Ghana is reworking debt under G20 Common Framework along with Zambia and Ethiopia.

The proposal is the first economically sustainable one under the Framework though still seen as too harsh by some analysts.