How close is Ghana to securing deal with international bondholders?

Ghana is on the path to restructuring its $13 billion Eurobond debt, with hopes of securing a deal that aligns with the IMF Debt Sustainability requirement. The country expects an Executive board review of its IMF programme in June this year, following the rejection of the initial plan by the IMF. Benjamin Boachie, Chief Economist at Secondstax, shared his insights on how close Ghana is to finalizing the debt deal during a recent CNBC Africa interview. Boachie highlighted the importance of reaching an agreement that satisfies both Ghana and its concessionary partners, such as the IMF and the World Bank. The reworked debt terms focus on retaining the original value of the bonds with longer maturity, signaling positive progress in the negotiations. Analysts have praised Ghana's handling of the debt restructuring process, noting its commitment to meeting the IMF's sustainability standards. Ghana's performance under the program has been described as generally strong, with better than expected economic growth playing a crucial role in attaining debt targets. The successful negotiations with the IMF reflect Ghana's dedication to fiscal discipline and financial stability. As a result, international investors have shown increased confidence in Ghana, leading to a rally in Ghanaian euro bonds. The positive reception from the global investment community indicates a vote of confidence in Ghana's economic trajectory. However, the prolonged debt restructuring process highlights the need for a more efficient global framework for debt treatment. Boachie emphasized the urgency of streamlining the process to avoid prolonged economic uncertainty for countries in need of debt relief. Moving forward, Ghana aims to take a leading role in reshaping the global architecture for concessionary finance to benefit developing nations across the globe. While Ghana's progress in debt restructuring serves as a hopeful example, broader challenges persist within sub-Saharan Africa regarding rising debt levels and high-interest rates. Boachie emphasized the importance of collective efforts to optimize the benefits of the African Continental Free Trade Agreement. By fostering a collaborative approach to economic development and debt management, African countries can achieve sustainable debt levels and enhance financial stability. Despite risks associated with fiscal indiscipline and economic uncertainty, Boachie remains optimistic about Africa's potential for growth and prosperity. By adhering to sound financial practices and leveraging opportunities for intra-Africa trade, African nations can work towards a more stable and prosperous future. Boachie's insights shed light on the complexities of debt restructuring and financial stability in the region, underscoring the importance of cooperative efforts and strategic planning for long-term economic success.