Ghana Seeks $10B Debt Relief Through $20B Bond Restructuring to Ease Fiscal Pressures, Faces Challenges Negotiating with Commercial Creditors
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Ghana aims to reduce its external debt by $10.5 billion through restructuring bonds worth $20 billion. This will help ease fiscal pressures.
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A significant portion of debt relief is expected from commercial creditors, especially Eurobonds. Ghana faces challenges negotiating with them.
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Ghana proposed a 30-40% haircut on principal to commercial creditors. This caused its sovereign bonds to decline significantly.
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Ghana needs to service $1.9 billion in maturing Eurobonds, 60% of its IMF bailout package. Interest payments on foreign loans crossed $3 billion.
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Debt relief negotiations involve delicate diplomacy and finance planning. Balancing relief necessity and creditor concerns poses a hurdle.