Ghana bets on S&P’s upgrade to bolster external debt talks
Ken Ofori-Atta — Minister of Finance

Ghana bets on S&P’s upgrade to bolster external debt talks

Ghana is hopeful that a sovereign rating upgrade by S&P will inspire confidence in the country’s debt restructuring discussions with external creditors.

The global agency raised the country’s local currency debt ratings from selective default (SD) to CCC positive last week in recognition of the successful completion of the domestic debt exchange programme (DDEP).

As talks with external creditors continue, the Finance Minister said the development was a milestone that it expected to rub positively on engagements with the external creditors. 

In a statement issued on Monday, February 26, the ministry said: “on Friday, February 24, 2023, S&P Global Ratings raised Ghana’s local currency sovereign credit ratings from SD to ‘CCC+/C’. This acknowledges the completion of the DDEP with a successful delivery of new securities to bondholders. In doing so, the selective default is substantially cured.” 

“The above stated milestone is further expected to accelerate the engagement with our external creditors,” the statement from the Public Relations Unit of the ministry said.

“The Government of Ghana also takes this opportunity to assure our external creditors of their equal importance to the Republic of Ghana. 

“We will, therefore, continue to work together to advance the progress of our external debt treatment, in order to ensure Ghana’s long-term macroeconomic stability,” it added.

The ministry also used the opportunity to assure domestic bondholders who did not participate in the DDEP that coupon and principal payments will resume from March 13.

It said the development was in fulfillment of the assurance given by the government to bondholders, who did not tender their holdings during the programme.

It said payments will resume after ongoing administrative steps to ensure that payments of coupons and principles of the oldbonds resume successfully.

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