Ghana back in the capital market after restructuring $13bn in Eurobond debt
Ghana is back in the international capital market after successfully restructuring $13 billion in Eurobond debt, says Finance Minister Dr. Mohammed Amin Adam.
At a press conference in Accra, Dr. Adam emphasized that this development marks a significant step forward, enhancing Ghana’s financial standing in the international market.
“We are back to the capital market. With this conclusion, our Eurobonds are going to start trading the very day we set off,” he said.
He announced that the government is carefully evaluating various factors before making any decisions about borrowing from the capital market.
“That is a decision we are yet to make, and so in due course, we will announce to the world when we will take additional debt,” he stressed.
Ghana has seen substantial participation from investors in its Eurobond Debt Exchange Programme, reflecting growing confidence in the country’s financial strategy.
This positive development could play a crucial role in helping Ghana complete the third review conducted by the International Monetary Fund (IMF), which is currently in the country.
Furthermore, the successful restructuring of this debt is pivotal for Ghana’s goal of achieving sustainable debt levels by 2028. By strengthening its position in the capital market, Ghana is addressing immediate financial challenges and laying the groundwork for long-term economic stability and growth.
Background
In 2022, Ghana faced profound challenges largely due to the ongoing effects of the Covid-19 pandemic and the geopolitical tensions stemming from the Russia-Ukraine conflict.
These events not only disrupted economic activity but also led to a significant fiscal deficit and unsustainable levels of debt.
The resultant economic instability severely eroded international investor confidence, causing many to reconsider their commitments to the nation.
Consequently, Ghana found itself effectively barred from accessing international capital markets, which hindered its ability to secure necessary funding for development and recovery.
This situation highlighted the urgent need for strategic financial reforms and investor engagement to restore confidence and reestablish Ghana’s position in the global economy.