The nation is working to restructure debt to match payment cuts accepted by countries such as the UK and China. The debt relief currently discussed would lead to bondholders getting 15% more than bilateral creditors, London-based Debt Justice, formerly known as the Jubilee Debt Campaign, said in a statement with the Accra-based Integrated Social Development Centre. Ghana’s bondholders must agree to a 50% reduction in debt payments if they are to match the terms received by the bilateral lenders, the non-governmental entities said. The West African nation is restructuring almost all of its $44 billion obligations as part of conditions for a $3 billion International Monetary Fund program. The country, which completed a domestic debt exchange last year, is close to a final agreement with its bilateral lenders to rework $5.4 billion and expects to reach a permanent deal on revamping $13 billion of US currency bonds with investors by the end of June. Ghana, which is using the Group of 20’s Common Framework to reorganize its bilateral loans, last month received the draft memorandum of understanding from the official creditor committee. It is currently renegotiating some terms with the official creditors, after which an agreement consistent with the January in-principle pact must be signed.
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