Ghana has made remarkable progress on its public debt restructuring, the International Monetary Fund has stated in its Third Review of Ghana’s Economic Facility Programme.

After successfully restructuring domestic debt last year and reaching agreement on a Memorandum of Understanding with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework in June, the government has announced the successful completion of the consent solicitation to restructure its Eurobonds, with the exchange planned to take place in the coming weeks.

According to the International Monetary Fund, the government is committed to pursuing good-faith efforts to reach an agreement with other commercial external creditors on a debt treatment consistent with program parameters and the comparability of treatment principles.

“The external sector has seen considerable improvement in 2024, driven by strong exports—particularly gold and to a lesser extent oil—and higher remittances with international reserves accumulating beyond program targets. Financial stability has been maintained, with progress on recapitalization and increased bank profitability”, it pointed out.

The IMF staff met with Finance Minister, Dr. Mohammed Amin Adam; Bank of Ghana Governor, Dr. Ernest Addison, and their teams, as well as representatives from various government agencies.

The IMF team also engaged with other stakeholders.

It expressed its gratitude to the Ghanaian authorities and other counterparts for their continued open and constructive engagement.

Meanwhile, a significant number of bondholders who participated in the Eurobond Debt Exchange Programme opted for the disco menu of new notes.

Investors will therefore take 37.0% haircut and receive interest payments of 5.0% from 2024 to July 2028, and 6 percent interest subsequently.