Ghana suspends payments on eurobonds, term loans and bilateral debt

Chicago, Dec. 29 – Ghana has suspended payments, including on its eurobonds, term loans and bilateral debt, according to an announcement on the ministry of finance website on Dec. 19.

Even though Ghana is working with the International Monetary Fund and achieved a staff-level agreement and started an exchange offer for its domestic debt, “Given the magnitude of the economic and social crisis that Ghana is confronted with, this domestic debt operation will not be enough to close the large financing gaps that Ghana faces over the coming years,” the announcement said.

Payments will be suspended for all debt service payments under certain categories of external debt, pending an order restructuring the affected obligations.

The suspension excludes multilateral debt, new debts contracted after Dec. 19 or debts related to certain short-term trade facilities.

The government stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable through a fair, transparent and comprehensive debt restructuring exercise in line with international best practices.

An investor presentation will be held at a later stage.

Investors may direct questions to investors.ghana@lazard.com and investorsghana@mofep.gov.gh.

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