Ghana is on the verge of finalizing an agreement in principle with its Eurobond holders for the restructuring of $13 billion worth of international debt, Reuters reported on Thursday, citing three sources.

This development follows a recent deal concluded with official creditors earlier this month.

The restructuring deal is expected to involve bondholders accepting a haircut on principal of up to 37% and the lengthening of the maturity of the bonds, according to two of the sources.

Ghana faced challenges with its external debt, defaulting on most of its $30 billion debt in 2022 due to the strain of the COVID-19 pandemic, the war in Ukraine, and higher global interest rates leading to surging debt levels.

Similar to Zambia, Ghana sought debt treatment under the G20 Common Framework, a process aimed at facilitating quick debt overhauls and involving China, the newest large bilateral lender.

"We can expect an announcement by next week," said one of the sources, while the other two indicated that an announcement could come as soon as Friday. The finance ministry of Ghana and the Paris Club, an alliance of creditor nations, could not be immediately reached for comment.

Formal talks with two groups of bondholders began in mid-March, including Western asset managers, hedge funds, and regional African banks. However, negotiations stalled in April after the proposed deal did not meet the International Monetary Fund's (IMF) debt sustainability analysis requirements, prompting both sides to regroup.

According to the sources, the deal now aligns with a revised IMF debt framework for Ghana, leading to the agreement in principle. Earlier this month, Ghana reached an agreement with its official creditor committee to formalize a debt restructuring deal reached in January.

These developments pave the way for the IMF executive board to convene on June 28 to consider a second review of Ghana's $3 billion loan, three-year package, and the release of the next tranche of $360 million.

Ghana, the world's second-largest cocoa producer, is navigating a complex debt restructuring process as it seeks to address its debt challenges and ensure financial stability.