Creditors of Ghana’s Eurobond have formed a creditors committee to support the country’s debt restructuring programme. This comes barely 24 hours after the Government announced the suspension of some of its external debt, including Eurobonds, Commercial term loans and bilateral debts. These efforts, together with revenue and expenditure measures in the 2023 budget, are to help restore macroeconomic confidence and to help in securing the $3bilion loan from IMF.
The Committee has appointed Orrick, Herrington & Sutcliffe LLP, as its legal advisor, with Rothschild & Co, as their financial advisors. The Committee is made up of members from mutual funds, asset managers, insurance firms, hedge funds, and family offices.
The Committee stated that they were prepared to support the Government in a prompt engagement to address the current debt difficulties in a release that was copied to Ghana News Agency on Monday.
“Such resolution will require fair burden-sharing collaboration among Ghanaian authorities, private creditors both domestic and international and official sector creditors.” it was underlined.
Additionally, it stated that a good faith negotiation procedure would prevent unilateral measures and necessitate a quick exchange of comprehensive economic and financial information with the Committee and other stakeholders.
They said that their action was intended to secure a result that was fair to creditors and sensitive to Ghana’s economic and social concerns.
It added that, “a key factor in measuring the success of Ghana’s debt resolution would be timely restoration of international market access, which remains critical for Ghana to meet its development objectives.”
The government finished a Staff-Level Agreement (SLA) with the IMF last week for a loan-support program. It then urged its creditors to act quickly so that the program may be approved by the IMF Management and Executive Board by the start of 2023.