"Ghana: IMF Board approval for $3bn ECF programme scheduled for January 2023"

" Ghana: IMF Board approval for $3bn ECF programme scheduled for January 2023 \r\n\r\nThe approval of a programme for Ghana by the Board of the International Monetary Fund is expected to come off at the earliest in January 2023, Singapore-based Redd Intelligence has stated.\r\n\r\nHowever, it says, in the worst case scenario, the IMF Board approval will happen latest in March 2023.\r\n\r\nIn its latest analysis on Ghana\u2019s debt restructuring, the market and research firm said \u201cthe SLA \u00a0[Staff-Level Agreement] is in good shape and the end-December target\u00a0looks realistic. IMF board\u00a0approval of the program is not expected until January [2023] at the earliest, after which the DSA [Debt Sustainability Analysis] parameters will become public\u201d. \r\n\r\nThe Government of Ghana is aiming to reduce its interest payments on external debt to not more than 18% of annual revenue by 2028.\r\n\r\nRedd Intelligence said the local debt restructuring should be viewed positively by Eurobond holders for two main reasons.\r\n\r\n \u201cIt addresses one of the key constraints in Ghana\u2019s Debt Sustainability Analysis \u2013 debt service \u2013 and it shows that the government is serious about achieving external debt restructuring in the first half of 2023. The exercise is expected to shrink Ghana\u2019s extremely high 70%-100% interest-to-revenue ratio, reduce gross financing needs, and, coming before the external debt exercise, it addresses an important concern for international creditors\u201d. \r\n\r\nGovernment launched a debt exchange programme December 5, 2022.\r\n\r\nAccording to the programme, the government is offering local holders the option to exchange bonds totaling\u00a0some $10.5 billion equivalent into four new issues with maturities in 2027, 2029, 2032, and 2037.\r\n\r\nThe bonds will pay zero interest in 2023, 5% in 2024 and then 10% from 2025 onwards. There will however be no cut in the principal amount.\r\n\r\nAll the new bonds have an amortizing structure."

"Ghana: IMF Board approval for $3bn ECF programme scheduled for January 2023"

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