$13bn External Debt Restructuring: Creditors enter non-disclosure agreements with Government
External creditors entered into non-disclosure agreements (NDAs) with the Government this week, signaling a first step in the process of starting negotiations on the restructuring of Ghana’s $13bn Eurobond debt.
The NDAs will temporarily restrict Ghana’s largest bondholders from trading the notes in exchange for non-public information for at least two weeks.
A group representing the private investors and government officials plan to hold meetings to kick off negotiations over the coming days, persons familiar with the matter disclosed to Bloomberg.
They further disclosed that bondholders are weighing a proposal put forth by the government without discussing details of the offer.
The Finance Ministry and international bondholders are expected to begin talks this week aimed at a deal to restructure roughly $13 billion of defaulted global debt.
Ghana began working to revamp its debt a little over a year ago as part of a deal with the International Monetary Fund, reaching an agreement in principle with bilateral creditors in January to rework $5.4 billion of obligations under the Group of 20 Common Framework for Debt Treatment.
The focus now is on finalizing a pact with eurobond investors, using the “comparability of treatment” guiding principle of the framework.
Investors had previously proposed a restructuring in which Ghana would link interest payments on some of the debt to the future economic growth of the country.
with files from Bloomberg…..
