Ghana’s IMF Deal Sets Stage for External Debt Restructuring Sequencially

West African country is latest developing nation to seek debt relief amid rising interest rates, Ukraine war

Ghana on Tuesday reached a $3 billion bailout deal with the International Monetary Fund that sets the stage for debt-relief negotiations with the West African country’s foreign bondholders and government creditors.

Last week, Ghana, one of the world’s largest producers of cocoa and an exporter of oil and gold, asked owners of around $11 billion in domestic bonds to exchange them for new ones with longer payment deadlines and lower interest rates. Like other developing countries, Ghana has struggled to service its debt amid rising global interest rates, the strong dollar and the economic fallout from Russia’s invasion of Ukraine.