ACCRA, Feb 14 (Reuters) – The Ghanaian finance ministry said on Tuesday its domestic debt exchange programme (DDEP) had closed on Feb. 10 with more than 80% participation of eligible bonds, taking it a step closer to securing a $3 billion International Monetary Fund bailout.

This follows five extensions of the scheme’s deadline, as the West African nation fought to secure participation of 80% while holdouts persisted despite several revisions to the original December offer.

In a statement, the ministry said participation had exceeded 80% without giving further details.

“The government is … grateful for the overwhelming participation of all bondholders. Your support and contributions have gotten your country much closer to securing the IMF programme,” it said.

“The alternative of not executing the DDEP would have brought grave disorder in the servicing of our national debt and exacerbated the current economic crisis.”

Ghana is fighting its way out of a generational economic crisis by hiking interest rates at record speed, cutting spending, and restructuring its local and foreign debt to secure the IMF funds.

In January it became the fourth nation to apply to the common framework platform, an initiative of Group of 20 major economies launched in 2020 to streamline debt restructuring efforts for poorer countries.

Its bilateral lenders are discussing the formation of an official creditor committee, a first step needed to engage in debt relief talks, sources told Reuters on Monday.

(Writing by Alessandra Prentice; Editing by Jacqueline Wong and Kim Coghill)