President Nana Addo Dankwa Akufo-Addo has praised the economic recovery underway in Ghana.

This recovery follows the government's successful restructuring of $13 billion in Eurobonds.

As a result, the country has been able to re-enter international financial markets.

On June 24, an agreement in principle was reached between the Republic of Ghana and the Ad Hoc Group of International Bondholders for restructuring the outstanding Eurobonds.

The International Monetary Fund (IMF) approved this agreement, confirming it aligned with the program parameters and met the Official Creditor Committee's comparability of treatment requirements for Ghana.

With support from the Committee of Holders of the Republic of Ghana’s Eurobonds, a consent solicitation was launched on September 5, proposing the restructuring plan to all bondholders.

The transaction has since concluded, with over 90% of bondholders voting in favor of the deal.

The new debt instruments are set to be settled and delivered on October 9, 2024, following the World Bank's longstop date on October 7, 2024.

On this date, the old bonds will be swapped for new securities according to the revised terms. Additionally, payments from the World Bank are expected to be executed on or before October 30, 2024.

“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,” 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.

Minister for Finance and Economic Planning Mohammed Amin Adam highlighted that the restructuring will enhance Ghana's debt sustainability, reduce the debt stock by $4.7 billion, and provide approximately $4.4 billion in cash flow relief over the next two years.

He noted that the deal is already positively impacting the macro-financial situation, boosting market confidence in Ghana and leading to a significant reduction in inflation rates. Growth projections have also improved, with the second quarter of 2024 recording the highest quarterly GDP growth in five years at 6.9%. The government is committed to advancing its reform agenda and attracting new investments to drive growth and job creation.

The government expresses heartfelt thanks 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 constructive engagement throughout the process.

The presidency's statement further expressed gratitude to the advisors Lazard Frères and Hogan Lovells, serving as financial and legal advisors, along with Algest, which acted as a strategic advisor to the Republic of Ghana during this debt restructuring.

“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.