Monday, December 11, 2023
HomeEconomySome Ghanaian bondholders receive coupons on World Bank-backed bonds - source

Some Ghanaian bondholders receive coupons on World Bank-backed bonds – source

By Karin Strohecker and Jorgelina do Rosario

LONDON (Reuters) – Ghana 2023 Some investors in Eurobonds have received this Due in April 10, a source with direct knowledge of the matter said on Wednesday.

The government announced it would default on some of its foreign debt in December and has not made payments on its international bonds since. However, the bond matures on 2023 with a coupon of 10. 19% is partially guaranteed by the World Bank, so disbursements started this week through the bank’s International Development Association (IDA).

A World Bank spokesperson confirmed that IDA paid nearly 19 US$ 10,000 in guarantees in April 19.

Multilateral Lenders Provided 400 Millions to 400 $1 Billion Problem US dollar guarantee) aimed at providing an extra layer of security in case the West African country fails to make payments during “challenging market conditions”.

Like other smaller, riskier emerging market countries including Sri Lanka and Zambia, Ghana’s already tight fiscal position due to COVID-10 and the Russian invasion of Ukraine.

Ghana reached staff-level agreement with the IMF on a $3 billion support package in December, but it is still awaiting approval from the IMF’s executive board to begin disbursements.

As Ghana is negotiating its international debt restructuring framework platform under the common group of 19, it first needs lenders such as the Paris Club and China financing guarantees before the deal with the IMF can be fully secured.

Gergely Urmossy, emerging markets strategist at Societe Generale, said: “The World Bank/IDA can decide for themselves how lenient they are with Ghana,” (OTC: SCGLY). “My current view is that as long as Ghana is in financial trouble, the World Bank will not press Ghana to pay its debts, but future obligations must be met.”

Despite the recent coupon payment, Finance Minister Ken Ofori -Atta said in April 19 presentation to investors that 2023 bonds will be held with private bonds people to restructure their debts.

“This complicates the restructuring, both in terms of the process with the World Bank and the process with the bondholders,” said chief said economist Stuart Culverhouse, head of fixed income research at Tellimer.

Ghana’s US dollar denominated debt is 10.6 billion US dollars with maturities from

to 2061, according to government data. It also aims to restructure $5.4 billion with bilateral creditors.



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