President Akufo-Addo has announced the resumption of stalled projects nationwide, following a $4.7 billion debt cancellation from the Eurobond restructuring deal.
The government has agreed in principle with two bondholder groups to restructure approximately $13 billion of its debt, making Ghana the second African country this month to reach the final stages of a debt overhaul.
This agreement is expected to provide Ghana with a cash flow relief of about $4.4 billion until 2026, when the current International Monetary Fund programme ends.
Speaking at the Jubilee House, President Akufo-Addo highlighted that the restructuring deal demonstrates renewed confidence in Ghana’s economy.
“An agreement has been struck over the restructuring of $13.1 billion of value of debts. The agreement will result in significant savings to the government. The savings include the cancellation of $4.7 billion. Many of the projects stalled as a result of the debt negotiations will now resume,” he assured.
In a related development, Finance Minister Dr. Mohammed Amin Adam has also announced the completion of Ghana’s debt restructuring programme with its official creditors. The government successfully restructured $5.1 billion of its debt with these creditors, in addition to the $13.1 billion restructuring with Eurobond holders.
Addressing attendees at a UK Town Hall meeting, Dr. Amin Adam highlighted that these efforts have resulted in savings of $8 billion for the country.
However, Associate Professor of Finance at Andrews University, Williams Kwasi Peprah, questioned the accuracy of the Finance Minister’s claims.
Speaking on Joy FM’s Top Story, he suggested that the minister’s comments might have been politically motivated.
“I am sure he was on a political platform and maybe he did not check his figures very well. Last week they announced that the bilateral creditors have given us debt deferment, meaning that we will pay fully the $1.5 billion. So, I don’t know why he mentioned the savings of $2 billion.”
Mr Peprah further noted that after a 37% haircut, the remaining amount for Ghana to pay on the Eurobond debt is $8.25 billion.
He emphasised that the true savings can only be determined once the final document is reviewed by Parliament in the mid-year budget adding, “If you really do the Maths very well, the figures do not tally based on what he said on the platform.”
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