The nation’s dollar bonds, which have been trading at distressed levels, jumped after the government announced its plan to seek support on Friday. Investors were concerned Ghana would not be able to refinance foreign debt after the pandemic and the war in Ukraine sent borrowing costs soaring.
The nation’s 2026 Eurobonds extended gains on Wednesday, rising 0.6% to 79.03c in the dollar, the highest since April. The yield fell 19 basis points to 16.15% on Wednesday morning.
Ghana will propose its own programme to the IMF. The government’s plan — for a minimum three years — will aim to restore debt sustainability and macroeconomic stability, strengthen the central bank’s monetary policy and build buffers against economic shocks, the nation’s finance ministry said on Tuesday in an emailed statement.
“This programme allows for a catalytic engagement, including regaining access to the capital market,” Ofori-Atta said in the interview, adding that Egypt’s talks with the IMF earlier this year encouraged the North African nation to sell Samurai bonds.
Ghana’s foreign exchange reserves have dropped to $8.3bn (about R138.8bn) at the end of April, from $9.7bn (about R162bn) at the end of last year.
In May the nation’s central bank lifted its benchmark interest rate by 200 basis points to 19% in a bid to slow inflation, which accelerated at 27.6% in May.
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