Ghana is set to reconnect with its global bondholders starting next week, according to Finance Minister Ken Ofori-Atta. Riding on the success of a recent deal to restructure $5.4 billion in official creditor debt, the West African nation aims to build on this momentum.
After engaging with holders of its outstanding Eurobonds in Marrakech last October, Ofori-Atta shared in an interview at the World Economic Forum that discussions will resume. The country plans to travel to China on Jan. 23, where China and France co-chair Ghana's Official Creditor Committee. The agreement with this committee played a pivotal role in accessing additional funds from a $3 billion International Monetary Fund (IMF) rescue loan.
Facing a default on most overseas debt in December 2022, Ghana is actively working to restructure $20 billion of external debt, following the successful restructuring of most local debt. Ofori-Atta acknowledged that last year's negotiations were challenging but emphasized the positive momentum gained.
The IMF board is scheduled to meet on Friday to decide on a $600 million disbursement from Ghana's bailout program, a move expected to unlock funding from other multilateral lenders. The World Bank is also poised to make a decision on $550 million of crucial funding on Jan. 25, as Ghana navigates its debt restructuring under the Common Framework, criticized for its slow progress during the COVID-19 pandemic.
Reflecting on the 2022 macroeconomic landscape, Ofori-Atta acknowledged challenges but highlighted improvements, including a rise in revenue and a decline in inflation. December's data revealed a year-on-year consumer inflation drop to 23.2%, compared to the over 50% during the default. Moreover, Ghana's growth is surpassing expectations, standing at 3%, more than double the IMF's projected rate of 1.2%, as noted by Ofori-Atta.