Accra, Aug 30, 2024, IANS

Accra, Aug 30 (IANS) The government of Ghana said that it would soon invite its Eurobond investors for a debt exchange offer to boost its debt restructuring efforts. During a regular monthly economic update, Finance Minister Mohammed Amin Adam said that the exchange would commence in the coming days, giving bondholders an offer to exchange their existing debts for reissued ones in a 21-day offer, Xinhua news agency reported. "We expect all of our outstanding bonds to be exchanged for our new ones. Investors can choose between two options," Adam added. The minister said the exchange will be open for 21 days, and the government expects the full support of the bondholder community, both abroad and in Ghana, for high participation. "The completion of this debt exchange will help restore our normal relationship with the bond market," said Adam. "The debt exchange will allow Ghana to save $4.4 billion in debt service and a cancellation of $4.7 billion throughout the International Monetary Fund (IMF)-supported programme." Ghana and two of its bondholder groups in June reached a deal in principle on restructuring their Eurobonds valued at $13 billion. According to the minister, the exchange offer reflects the terms agreed in principle with bondholders including important concessions from the bondholders, ensuring a fair burden sharing between Ghana's domestic, official and commercial external creditors. The government of Ghana secured a loan of $3 billion from the IMF in May 2023 to implement reforms aimed at saving the economy, which was reeling under ballooning debts, exchange rate depreciation and surging inflation.