Ghana had reached a deal with bondholders that will forgo nearly $5 billion in a sovereign debt restructuring deal that would help the country avoid default. The deal marks a key step in the country’s quest to restructure its $13 billion debt that left the country on the brink of financial collapse. The deal is the latest sovereign debt restructuring launched under a G20-approved “common framework”. Bondholders also finally voted to approve a restructuring by Zambia last month under the framework, almost four years after the southern African nation defaulted. Double-digit inflation and disruptions in the country’s gold and oil exports left the economy in uncharted territory on the verge of collapse.

Source: The North Africa Journal June 26, 2024 10:32 UTC