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Ghana has successfully restructured and exchanged $13 billion of international debt after receiving approval from over 90% of bondholders, marking a significant milestone in its debt rework process. Here is a condensed timeline of key events leading up to this achievement:

– In February 2022, Moody’s downgraded Ghana’s credit rating due to “very high credit risk”.
– Following the downgrade, the Central bank hiked Interest rates by a record 250 basis points in March 2022 to address Inflation and currency challenges.
– In May 2022, Ghana initially intended to manage its debt without assistance from the International Monetary Fund (IMF), but later reversed course in July 2022 amid economic hardship and protests.
– By December 2022, the government announced its intention to default on most external debt.
– In January 2023, Ghana requested debt restructuring under the G20’s Common Framework process.
– Fast forward to October 2023, Ghana proposed a 30-40% haircut to bondholders as part of the debt rework plan with official creditors.
– In June 2024, Ghana reached an agreement in principle with international bondholders on the restructuring of its dollar bonds.
– By October 2024, the government confirmed that over 90% of investors had approved the restructuring of the bonds.

This successful debt restructuring marks a significant turning point for Ghana as it navigates its financial challenges towards a more sustainable future.

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