Ghana strikes deal with bondholders to end debt default

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Ghana strikes deal with bondholders to end debt default
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Once confirmed, agreement will lower value of $13bn of international bonds by nearly 40%

Ghana has agreed a deal that will wipe nearly 40 per cent off the value of $13bn in international bonds, putting the west African nation on a path to end almost two years in default on its debt. Bondholders including Abrdn, Neuberger Berman, Greylock Capital Management and Amundi will give up $4.7bn of their original claim, Ghana’s government and a committee representing the foreign creditors said in statements on Monday.

The international bondholder committee owns about 40 per cent of the debt, while a regional bondholder committee owns another 15 per cent. The agreement, which the government said could be consummated within weeks, sets Ghana on a course to leave default by the time of elections in December in which President Nana Akufo-Addo is stepping down.

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