• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Swift Ghana debt rework would benefit Eurobond prices, says JP Morgan

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
97
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Swift Ghana debt rework would benefit Eurobond prices, says JP Morgan

A swift conclusion to Ghana’s external debt restructuring would benefit its international bond prices but the talks may be tricky and holders could face a write down of up to 50%, analysts said after the country secured a US$3 billion IMF rescue loan.

Ghana is aiming for US$10.5 billion of debt service relief for 2023-2026 as it restructures two-thirds of its US$30 billion external debts, according to the International Monetary Fund’s Debt Sustainability Analysis published on Wednesday, giving more hints on what sort of hit international bond holders might face.

JPMorgan calculated that current prices for Ghana’s Eurobonds imply a 14% “exit yield” but a quick restructuring could improve it to 12%, JPMorgan analysts said in a note to clients, referring to the interest rate at which the new securities will trade on the day of the debt exchange.

Most of the Eurobonds, of which US$13 billion are outstanding, are trading at 37 to 42 cents in the dollar, according to Tradeweb data, still deeply distressed but having gained about five cents in the past month in anticipation of IMF loan approval.

“A timely completion of the external restructuring process similar to the DDE would be beneficial for bond prices,” the JPMorgan note said. “That said, we remain on the sidelines given the path ahead could remain tricky with regards to debt negotiations with both the official and commercial creditors.”

Ghana defaulted on most external debt late last year, after its already strained finances caved under the fallout from COVID-19 and Russia’s war in Ukraine.

RelatedPosts

Why Women Must Be Involved In Building Flood Resilience

African Development Bank Group and Michael Bloomberg to Drive Private Investment into Africa

Bitcoin Drops to $109K as Crypto Market Loses $200 Billion

It is aiming to restructure US$5.4 billion of official bilateral loans owed to China and Paris Club nations through the G20’s Common Framework process, plus US$14.6 billion of overseas commercial debt, including the bonds.

The IMF DSA “translates to a 40-50% haircut on external debt,” Goldman Sachs economist Bojosi Morule said in emailed comments.

“We found moderate upside to bond prices (when Eurobonds were trading in the 30s) at [Net Present Value] haircuts up to 60% at exit yields up to 14%… given the increase in the bond prices more recently, this implies less upside (though still positive) relative to our previous estimates,” she said.

Tags: Eurobond pricesGhana debt reworksays JP MorganSwift Ghana debt rework would benefit Eurobond prices
No Result
View All Result

Highlights

AI in Africa: 5 Issues That Must be Tackled for Digital Equality

ECG Posts Record Monthly Revenue of GHS 1.74bn for July

IMF Urges Lebanon to Deepen Reforms Amid Fragile Rebound and Banking Sector Challenges

GCB Bank Outlines Post-IATF Path to Powering Africa’s Trade Future

AGI Raises Alarm Over Weak Consumer Demand Despite Signs of Economic Recovery

Lead, Mercury Found in Turmeric, Tom Brown and Others – FDA Report

Trending

Features

Why Women Must Be Involved In Building Flood Resilience

September 26, 2025

Why Women Must be Involved in Building Flood Resilience Women carrying children through chest-deep waters, families watching...

African Development Bank Group and Michael Bloomberg to Drive Private Investment into Africa

September 26, 2025

Bitcoin Drops to $109K as Crypto Market Loses $200 Billion

September 26, 2025

AI in Africa: 5 Issues That Must be Tackled for Digital Equality

September 26, 2025

ECG Posts Record Monthly Revenue of GHS 1.74bn for July

September 26, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.