Fitch Ratings has projected that Ghana will exit sovereign default status by July 2025. The agency expects the country to finalize its external debt restructuring by the end of June 2025 and to complete the restructuring of non-bond debt by the close of 2024.
This outlook was shared during Fitch’s recent webinar discussing debt restructuring efforts in Ghana, Zambia, and Ethiopia. Thomas Garreau, Associate Director for Europe, the Middle East, and Africa Sovereign Ratings at Fitch, stated, “We anticipate the conclusion of Ghana’s common framework restructuring in the first half of next year. However, upcoming elections are likely to delay the process, which is why we foresee completion in 2025.”
Ghana reached an agreement on official debt treatment with the Official Creditor Committee (OCC) in January 2024. Additionally, a Eurobond exchange was completed in October 2024, covering approximately $14.2 billion in restructured Eurobonds, including Participating Debt Instruments (PDIs). The restructuring included a haircut equivalent to 6.2% of the country’s GDP.
The move has reduced Ghana’s interest payments, lowering Fitch’s projected revenue burden by 8% in 2024, 5% in 2025, and 4% in 2026.
Source: TheDotNews