Economic recovery: We’ve accomplished what everyone said was impossible – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has celebrated the economic recovery seen in Ghana’s economy.

This was after the Government announced that Ghana was back on the international financial markets after successfully completing the transaction of restructuring $13 billion in Eurobonds.

On September 5, with the backing of the Committee of Holders of the Republic of Ghana’s Eurobonds, the Republic of Ghana launched a consent solicitation for its proposal to all bondholders. Today, the transaction has been concluded, with over 90% of bondholders voting in favour of the deal.

The settlement and delivery of the new debt instruments are scheduled for October 9, 2024, after the World Bank longstop date on October 7, 2024. On this date, old bonds will be exchanged for new securities under the revised terms. On or before 30 October 2024, World Bank payments will be executed. More details on technical processes following the Issue Date, including related to the holding period, can be found here.

“Today, our economy has turned a corner. This landmark achievement ushers in a new phase of economic recovery, returning Ghana to a sustainable debt path and putting us back on the investor map. We’ve accomplished what everyone said was impossible – we decisively resolved Ghana’s debt overhang problem. This will allow Ghana to stabilise our finances and focus all our efforts on continuing the implementation of the ambitious reform program to improve the well-being of the Ghanaian people. We are thankful to our bondholders, the IMF and our official creditors for their support and collaborative engagement to arrive at this solution,” his Excellency President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, stated.

“Today’s completion of the restructuring will help Ghana restore debt sustainability, reducing the debt stock by $4.7 billion and providing cash flow relief of approximately $4.4 billion in the next two years. The deal is already positively influencing our macro-financial situation. The increasing market confidence in Ghana and our economic trajectory has significantly reduced the inflation rate. Our growth projections are also more positive – Q2 of 2024 saw the highest quarterly GDP growth recorded in the past five years, at 6.9%. Our government takes pride in this progress and remains committed to advancing our reform agenda and attracting new investment to foster growth and job creation,” Mohammed Amin Adam, Minister for Finance and Economic Planning of Ghana, said.

The Government extends sincere gratitude to the Steering Committee of the Ad Hoc Creditor Committee of International Bondholders and their advisors, Rothschild & Co and Orrick, Herrington & Sutcliffe LLP, as well as the Steering Committee of the Creditor Committee of Regional Bondholders and their advisors, Renaissance Capital Africa, for their productive and consistent engagement throughout the process.

“We thank our advisors Lazard Frères and Hogan Lovells, acting respectively as financial and legal advisors, and Algest, acting as a strategic advisor, for supporting the Republic of Ghana during this debt restructuring,” a statement issued by the presidency said.

 

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