Asset managers Ashmore and GMO have joined the steering committee of a creditor group of Ghana’s international bondholders as country’s debt restructuring efforts gather pace, three sources close to the matter said.
Ghana, which is facing its worst economic crisis in a generation, is targetingUS $10.5 billion of external debt service relief from 2023-2026, according to the International Monetary Fund, which signed off on a $3 billion programme last week.
“Ghana’s plan looks pretty ambitious,” said one source, who asked not to be named because talks are private. “This government is very keen to get a quick deal.”
Ashmore declined to comment. GMO did not immediately respond to a request for comment.
Other members of the steering committee are Abrdn, Amundi, BlackRock, Greylock and Ninety One, according to earlier statements from the group.
Ghana faces a debt overhaul after its already strained finances buckled under the economic fallout from COVID-19 and Russia’s invasion of Ukraine, and defaulted on most of its external debt in December.
The nation is also in talks to rework $13.3 billion of debt to private overseas bondholders, according to IMF’s latest data.
Of its $30 billion in external debt, $20 billion is eligible for restructuring, including loans by bilateral creditors such as the Paris Club and China. Reuters