Economy

Government nearing deal on Eurobond debt restructuring

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The government is approaching a deal with Eurobond holders on restructuring its debt, following substantial progress on new terms for settling the $13 billion owed to creditors. 

This comes after the International Monetary Fund (IMF) rejected the initial terms, citing a misalignment with its program aimed at achieving sustainable debt levels by 2028.

Finance Minister Dr. Mohammed Amin Adam discussed these developments at the Annual General Meeting of the Africa Development Bank in Nairobi, Kenya. 

“We are close to finalizing our negotiations with Eurobond holders.The figures we are seeing this year already indicate that we are likely to perform better than projected,” he said. 

He attributed this positive outlook to increased investment in agriculture and industrialization and announced the launch of a new program: the SME Growth and Opportunity Programme, which aims to mobilize resources to increase financing to small and medium-sized enterprises (SMEs).

The Bank of Ghana reported continued strength in the country’s Gross International Reserves throughout the first four months of 2024. 

As of April 2024, the stock of Gross International Reserves surged to $6.59 billion, equivalent to 3.0 months of import cover, up from $5.91 billion (2.7 months of import cover) at the end of December 2023. Excluding encumbered and petroleum assets, Gross International Reserves increased significantly to $4.32 billion, compared to $3.66 billion at the end of December 2023.

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