JOHANNESBURG/LONDON, Dec 9 (Reuters) – Ghana has begun restructuring its debt by rolling out a plan to swap $10.5 billion in local bonds with new ones, seeking IMF help and by preparing a proposal to restructure its foreign debt as the West African country struggles with its worst economic crisis in a generation.
WHY THE NEED TO RESTRUCTURE?
Inflation in Ghana has soared in 2022 to a 21-year peak of 40.4% annually in October. Several steep interest rate hikes – the most recent by 250 basis points to 27% in November – have failed to check rising prices.
The cedi has lost more than 50% of its value this year , pushing up the cost of Ghana’s external debt.
The gold, cocoa and oil producer has been locked out of international markets as the pre…
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