A proposal by the Government of Ghana for a debt swap that would forgive 35% of the principal or coupons owed by external creditors who hold $20 billion of Ghana’s debt has not yet received approval.
In addition, between 11 and 14 billion dollars in matured interest payments will be made in 2026.
Exclusive information JoyNews has learned is presently being considered by the creditors.
A delegation from the International Monetary Fund is in Ghana to assess the country’s progress on the $3 billion, three-year agreement so far.
A victory for Ghana would result in the release of an additional 600 million dollars.
A restructured external debt, according to former minority leader Haruna Iddrisu, will significantly affect the economy.
“External debt holders may be compelled to accept a haircut of up to 35 per cent but certainly not less with the interest service between 11 to 14 billion dollars deferred until after the conclusion of the IMF programme in three years. That will mean that project financing will suffer,” he said.
He continued by saying that projects that are backed by loans would likewise stall out, if not be abandoned, and that this will cost the state money.
He suggested that the nation consider announcing a state of economic emergency in light of this.
This, he explained is “because loan finance projects have been halted, expatriate staff and many enterprises had to leave, domestic workers have been laid off and there is no solution.”
Dr. Mohammed Amin Adam, the Minister of State for Finance, is optimistic that a settlement will be achieved this month.
“We have two types of external debt – we have the Eurobond holders and bilateral creditors.”
We established two committees for the holders of Eurobonds: one for worldwide and one for regional holders. We engaged them in productive conversation and discussed the reorganization options with them in May of this year in the hopes to receive an offer from them.
“As I speak, we have received an offer from the regional bondholders and we are negotiating. We are hoping to receive an offer from the international bondholders,” he said.