"Price of Ghana\u2019s Eurobonds drop by $1.60; yields rise by 120bps over external debt payment suspension"

" Price of Ghana\u2019s Eurobonds drop by $1.60; yields rise by 120bps over external debt payment suspension \r\n\r\nPrice of Ghana\u2019s Eurobonds dropped on Monday afternoon following the announcement of the suspension of payments of the country\u2019s external debts by the Finance Chief, Ken Ofori-Atta.\r\n\r\nGhana\u2019s 2032 bond fell by $1.60 in price reaching $32 indicating investors willingness to take a hit and exit the country\u2019s bond market.\r\n\r\nOn the back of the fall in price of the 2032 bond, yields of the 2032 bond rose by 120bps (1.2%) to hit 29%.\r\n\r\nThe 2032 bond issued on March 26, 2019 which matures on March 26, 2032 offers coupon rates of 8.12%.\r\n\r\nTotal volume of the issued 2032 bond amounts to $1.25bn.\r\n\r\nFinance Chief Ken Ofori-Atta, on Monday, December 19,\u00a0announced the suspension of payment on selected external debts including payment on\u00a0Ghana\u2019s Eurobonds, commercial term loans, and bilateral debt.\r\n The decision by the Finance Ministry to suspend payments of the country\u2019s external debts, it noted in a statement issued on Monday, December 19, 2022, forms part of \u00a0 \u201cadditional emergency measures necessary to prevent a further deterioration in the economic, financial, and social situation in Ghana.\u201d \r\n \u201cThis suspension will include the payments on: our Eurobonds; our commercial term loans; and on most of our bilateral debt. This suspension will not include the payments of our multilateral debt, new debts (whether multilateral or otherwise) contracted after 19 December 2022 or debts related to certain short term trade facilities. \r\n\r\n \u201cWe are also evaluating certain specific debts related to projects with the highest socio-economic impact for Ghana which may have to be excluded. This suspension is an interim emergency measure pending future agreements with all relevant creditors ,\u201d\u00a0 read parts of the statement. \r\n\r\n \u201cAs it stands, our financial resources, including the Bank of Ghana\u2019s international reserves, are limited and need to be preserved at this critical juncture,\u201d \u00a0it added."

"Price of Ghana\u2019s Eurobonds drop by $1.60; yields rise by 120bps over external debt payment suspension"

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