Ghana has finally reached an agreement in principle with its Eurobond holders to restructure some $13.1 billion debt.

The country in December 2022 announced a suspension of the payment of some of its external debt as it began steps to restructure its debts after it had reached out to the International Monetary Fund (IMF) upon becoming debt distressed.

After a year and half of negotiations, the committee of holders of Ghana’s Eurobonds have announced that it has reached an agreement-in-principle with the Government of Ghana on a restructuring of the Eurobonds. The statement which includes terms of the agreement reveals bondholders will have to take a 37% nominal haircut of accrued amount up until 31/12/2023.

The Government per the agreement is also to reinstate and implement an amended Fiscal Responsibility Act (suspended during the COVID-19 pandemic) as the bondholders would forego approximately $4.7 billion of their claims and provide cash flow relief of approximately $4.4 billion during the IMF program period.

The agreement also includes non- financial provisions such as the semi-annual disclosure of public debt, the most-favored-creditor clause and loss reinstatement clause.

In all, 15 eurobonds have been restructured with a latest maturity date of 2037.

Find attached the press release and full terms of the restructuring agreement: