Ghana

About Ghana

Ghana defaulted on most of its external debt in December 2022. The default affected approximately 13 billion in Eurobonds and bilateral loans. Ghana had been hit by the COVID pandemic, falling commodity prices, and fiscal mismanagement. Inflation reached 54 percent. The cedi lost half its value. Ghana secured a 3 billion IMF program in May 2023. The debt restructuring involved significant haircuts for Eurobond holders and domestic debt holders. Domestic debt restructuring was particularly painful, affecting pension funds and banks. Ghana reached an agreement with Eurobond holders in June 2024. The restructuring included a 37 percent principal haircut and extended maturities. The Ghana case demonstrated the growing sophistication of sovereign debt restructuring frameworks in Africa.