Ratings agency Fitch is expected to move Ghana out of sovereign default by July 2025, following its anticipation that the country will complete the external debt restructuring by the end of June 2025.
It is optimistic that 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.
Thomas Garreau, Associate Director of Europe, Middle East, and Africa Sovereign Ratings at Fitch, 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 could delay the completion of the process, hence our forecast for next year.”
Ghana reached 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, including PDIs.
The haircut represented 6.2% of Gross Domestic Product.
Interest payments have also been reduced by 8% of Fitch’s projected revenue in 2024, 5% in 2025, and 4% in 2026.