Three people familiar with the situation have confirmed that Ashmore and GMO, two prominent asset managers, have joined the steering committee of an international bondholders’ group that is supporting Ghana’s debt restructuring efforts.
Last week, the International Monetary Fund approved a $3 billion program to assist Ghana, which is facing its worst economic crisis in a generation, in reducing its external debt service obligations by $10.5 billion between 2023 and 2026.
“Ghana’s plan looks pretty ambitious,” a source close to the negotiations said, declining to be identified because the discussions are private. This administration is eager to reach an agreement as soon as possible.
Other members of the steering committee, according to previous statements, include Abrdn, Amundi, BlackRock, Greylock, and Ninety One.
Ghana defaulted on most of its external debt in December, as its already strained finances collapsed as a result of the economic fallout from COVID-19 and Russia’s invasion of Ukraine.
Negotiations are also underway, according to the most recent IMF information, to restructure $13.3 billion in debt to private overseas bondholders.
Twenty billion dollars of its thirty billion dollar external debt can be restructured, including loans from bilateral creditors such as the Paris Club and China.
