Official Creditor Committee approves Ghana’s deal with Eurobond holders – Finance Ministry announces

The Ministry has announced that it has received a formal confirmation from its Official Creditor Committee (OCC) that the Agreement in Principle reached with representatives of Eurobond holders is consistent with the Comparability of Treatment principle.

As part of the OCC Common Framework for Debt Restructuring, there must be comparable treatment of Ghana’s debt due to all its other external creditors in the scope of the restructuring.

“The Government intends to continue proactive engagement with the Steering Committees to finalise documentation and proceed promptly with the consent solicitation.

“The Government thanks its official partners as well as representatives from the two Bondholders’ Committees for their constructive engagement over the past weeks,” a statement released by the Ministry on Monday July 8 said.

Under the OCC Framework for debt restructuring, there must be a Comparable Treatment of Ghana’s Debts.

This is to ensure that, whatever terms that Government of Ghana reaches with the bilateral creditors, the same should be extended to other creditors.

The Ministry of Finance was therefore required to send the terms reach under the agreement with the bilateral creditors, to the official creditors for their acceptance.

The Ministry of Finance can now go ahead and launch the “Debt Exchange Programme” for the Eurobond Holders to restructure the debt.

However, the bondholders must first move to fully accept the offer, despite the Agreement in Principle reached.