Ashmore, GMO join Ghana bondholder group steering committee -sources (updated)
23/05/2023 09:38
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By Jorgelina do Rosario and Karin Strohecker
LONDON, May 23 (Reuters) - Asset managers Ashmore and
GMO have joined the steering committee of a creditor group of
Ghana's international bondholders as the West African country's
debt restructuring efforts gather pace, three sources close to
the matter said.
Ghana, which is facing its worst economic crisis in a
generation, is targeting $10.5 billion of external debt service
relief from 2023-2026, according to the International Monetary
Fund, which signed off on a $3 billion programme last week.
"Ghana's plan looks pretty ambitious," said one source, who
asked not to be named because talks are private. "This
government is very keen to get a quick deal."
Ashmore ASHM.L declined to comment. GMO did not
immediately respond to a request for comment.
Other members of the steering committee are Abrdn, Amundi,
BlackRock, Greylock and Ninety One, according to earlier
statements from the group.
Ghana faces a debt overhaul after its already strained
finances buckled under the economic fallout from COVID-19 and
Russia's invasion of Ukraine, and defaulted on most of its
external debt in December.
The nation is also in talks to rework $13.3 billion of debt
to private overseas bondholders, according to IMF's latest data.
Of its $30 billion in external debt, $20 billion is eligible
for restructuring, including loans by bilateral creditors such
as the Paris Club and China.
(Reporting by Jorgelina do Rosario and Karin Strohecker;
editing by Jason Neely)
((karin.strohecker@thomsonreuters.com; +442075427262; Reuters
Messaging: karin.strohecker.reuters.com@reuters.net))