Fitch to move Ghana out of sovereign default by July 2025
Ratings agency, Fitch, would move Ghana out of sovereign default by July 2025.
This follows its anticipation of the country completing the external debt restructuring by the end of June 2025.
It is optimistic Ghana will also complete the non-bond debt treatment by the end of this year.
The UK-based firm disclosed this in its latest webinar on debt restructuring in Ghana, Zambia and Ethiopia.
Associate Director of Europe, Middle East and Africa Sovereign Ratings at Fitch, Thomas Garreau, said “For Ghana, we also expect the completion of the common framework restructuring by the first half of next year. There are some elections and that would delay the completion of the process, hence our forecast of next year”.
Ghana had an agreement with the Official Creditor Committee (OCC) on the parameters of official debt treatment in January 2024.
The Eurobond exchange also took place in October 2024.
About US$14.2 billion of Eurobonds have been restructured so far. They include PDIs.
The haircut represented 6.2% of Gross Domestic Product.
Interest payments has also reduced by 8% of Fitch’s projected revenue in 2024, 5% in 2025 and 4% in 2026