The government is preparing to launch its Eurobond Debt Exchange Programme next week, aiming to restructure approximately $13 billion in outstanding Eurobond debt. The programme, expected to run for 10 days, will invite investors to exchange their existing bonds for newly issued ones under revised terms.
This move follows a preliminary agreement with Eurobond holders reached in June 2024, where bondholders are expected to concede around $4.7 billion in debt. The offer includes two restructuring options: the P.A.R. option, capped at GHS 1.6 billion, and the Disco option, which allows investors to exchange their holdings for three new bond instruments. Bondholders will face a 37% haircut on both interest and principal maturities.
To ensure fair treatment among creditors, the government has introduced a “most favoured creditor clause.” The International Monetary Fund (IMF) has endorsed the programme, highlighting its alignment with Ghana’s Debt Sustainability Programme and urging the country to finalize external debt restructuring before the December elections. Additionally, Ghana is negotiating with bilateral commercial creditors as part of its broader strategy to manage external debt.
