Ghana has reached agreement-in-principle with its Eurobond holders regarding the restructuring of some US$13 billion debt to the creditors. The Committee of holders of Ghana's Eurobonds, announced this development on Monday, June 24. Implementation of the agreement-in-principle is subject to mutual agreement on deal documentation and other stated conditions. It noted that the proposed agreement on the restructuring of the Eurobonds would resolve Ghana's default on the Eurobonds to provide significant cash flow and debt stock relief to the country. That, the Committee said was in support of Ghana's economic recovery in the context of the International Monetary Fund (IMF)-financed programme. It has thus, encouraged all holders of the Eurobonds to carefully consider the terms of the government's prospective offer in relation to the agreement-in-principle, and make their own independent appraisal of the merits and risks of participation. The Committee welcomed the government's commitment to reinstate and im plement an amended Fiscal Responsibility Act, aimed at ensuring macroeconomic stability and debt sustainability. To achieve this, the Act, among others, charges the government to ensure that the overall fiscal balance on a cash basis for a particular year does not exceed a deficit of five per cent of Gross Domestic Product (GDP) for that year. However, the Committee underscored the need for the country to sustain economic policy implementation to bolster macroeconomic stability, improve the investor environment and to institutionalise fiscal credibility. Providing details on the agreement, it indicated that the non-financial provisions included a semi-annual disclosure of public debt, the most-favoured-creditor clause and loss reinstatement clause. That, the Committee said were part of the package of measures to normalise relations with bondholder investors and to progress towards restoring Ghana's international market access. Ghana suspended payments on its external loans in December 2022 as part of the country's broader debt restructuring effort under the 17th IMF loan-support programme and reach debt sustainability. At the time of the suspension of the external debts, the Ministry of Finance explained that it was interim emergency measure, pending future agreements with all relevant creditors. It was borne out of a multiple of factors, including the adverse impact of the COVID-19 pandemic, surge in inflation, Cedi depreciation, and stress on financing government budget, which made the country's debt unsustainable. Source: Ghana News Agency