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Ghana announces successful completion of Debt Restructuring
The Government of the Republic of Ghana is pleased to announce that Ghana is back on the international financial markets after successfully completing the transaction of restructuring $13 billion in Eurobonds today.
On June 24, the Ad Hoc Group of International Bondholders and the Republic of Ghana reached an agreement in principle for restructuring the outstanding Eurobonds.
The agreement was approved by the International Monetary Fund as compatible with the programme parameters and met the comparability of treatment requirements of the Official Creditor Committee for Ghana.
On September 5, with the backing of the Committee of Holders of the Republic of Ghana’s Eurobonds, the Republic of Ghana launched a consent solicitation for its proposal to all bondholders. Today, the transaction has been concluded, with over 90% of bondholders voting in favour of the deal.
The settlement and delivery of the new debt instruments are scheduled for October 9, 2024, after the World Bank longstop date on October 7, 2024. On this date, old bonds will be exchanged for new securities under the revised terms. On or before 30 October 2024, World Bank payments will be executed. More details on technical processes following the Issue Date, including related to the holding period, can be found here.
“Today, our economy has turned a corner. This landmark achievement ushers in a new phase of economic recovery, returning Ghana to a sustainable debt path and putting us back on the investor map. We’ve accomplished what everyone said was impossible – we decisively resolved Ghana’s debt overhang problem. This will allow Ghana to stabilise our finances and focus all our efforts on continuing the implementation of the ambitious reform program to improve the well-being of the Ghanaian people. We are thankful to our bondholders, the IMF and our official creditors for their support and collaborative engagement to arrive at this solution,” his Excellency President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, stated.
“Today’s completion of the restructuring will help Ghana restore debt sustainability, reducing the debt stock by $4.7 billion and providing cash flow relief of approximately $4.4 billion in the next two years. The deal is already positively influencing our macro-financial situation. The increasing market confidence in Ghana and our economic trajectory has significantly reduced the inflation rate. Our growth projections are also more positive – Q2 of 2024 saw the highest quarterly GDP growth recorded in the past five years, at 6.9%. Our government takes pride in this progress and remains committed to advancing our reform agenda and attracting new investment to foster growth and job creation,” Mohammed Amin Adam, Minister for Finance and Economic Planning of Ghana, said.
The Government further extended sincere gratitude to the Steering Committee of the Ad Hoc Creditor Committee of International Bondholders and their advisors, Rothschild & Co and Orrick, Herrington & Sutcliffe LLP, as well as the Steering Committee of the Creditor Committee of Regional Bondholders and their advisors, Renaissance Capital Africa, for their productive and consistent engagement throughout the process.
They added, “We thank our advisors Lazard Frères and Hogan Lovells, acting respectively as financial and legal advisors, and Algest, acting as a strategic advisor, for supporting the Republic of Ghana during this debt restructuring.”
News
National Service Authority goes cashless
The National Service Authority (NSA) has announced a mandatory transition to a cashless payment system.
This initiative aligns with the government’s drive to modernize revenue collection.
In a statement, NSA noted that effective immediately, all user agencies and stakeholders are directed to make all payments,
including the 20% and 10% administrative service charges, through the GHANA.GOV platform.
This shift to digital payments offers greater transparency, convenience and accessibility for those working with the NSA.
By Edem Mensah-Tsotorme
Read the full statement below
News
Greater Accra Regional Minister calls on traders to operate within designated spaces to ease congestion
The Greater Accra Regional Minister, Linda Obenewaa Akweley Ocloo, has called on traders in the city to operate within designated spaces to ease congestion and maintain cleanliness in market centres.
Speaking with traders at the Kaneshie Market on February 4, 2025, during a tour of selected market centres to assess sanitation challenges, reinforce government commitment to address indiscriminate refuse disposal, and improve market conditions, the minister called for collaboration between traders and local authorities to address sanitation and maintain order.
She assured the new government’s commitment to addressing urban challenges and improving market conditions in Accra as part of its broader agenda for a cleaner city.
“We are here to engage you in a conversation about our mission to improve cleanliness in Greater Accra. We are taking into account the conditions of the roads, your problems, and your suggestions. Most walkways have been taken over by traders instead of serving their original purpose, which leads to traffic congestion. We want to understand your challenges so that we can find the best way to assist you,” the Minister stated.
The Minister who was accompanied by officials from the Greater Accra Regional Coordinating Council ( GARCC) led by the Chief Director of the GARCC, Mrs. Lilian Baeka, some staff from the Accra Metropolitan Assembly(AMA) and other sister assemblies in the Region used the opportunity to enquire about the state of waste disposal within the market and the efficiency of refuse collection by the assemblies.
“Does it take long for the refuse to be collected after it is gathered? These are some of the issues we want to address,” she added, inviting traders to share their thoughts.
The President of the Greater Accra Markets Association, Mrs. Mercy Naa Afrowa Needjan who welcomed the minister, expressed gratitude for the visit and assured traders commitment to rally support behind her as a woman in leadership.
”In the market, we face numerous challenges we wish to discuss. There are various groups of traders with some selling at the top, others beneath, while some can be relocated, others should be removed. However, we must follow due process to ensure that people’s livelihoods are not affected. She cannot do it alone, and we are ready to support her efforts,” she stated.
She noted that efforts to regulate trading activities, especially on the Kaneshie overhead footbridge, had proven difficult despite continuous engagements with the police.
Madam Mercy Naa Afrowa Needjan identified street trading as a major concern, explaining that it had significantly affected business inside the main markets.
“Our major problem is those selling outside. Because of them, the market is now dry. Almost everyone has moved onto the streets. They are our brothers and sisters, and we want them inside the market. There are a lot of vacant spaces they can occupy,” she said.
On sanitation, she remarked that significant progress had been made, stressing that previously, the Kaneshie market was associated with rubbish, but the story had changed for good.
