Ghana approves $2.8 billion debt relief deal with creditor nations
ACCRA June 25 (Reuters) - Ghana's parliament approved a $2.8 billion debt restructuring deal late Tuesday with 25 creditor nations, including China and France, aiding disbursements under an IMF bailout programme to alleviate the country's worst economic crisis in decades.
The West African nation, the world's second-largest cocoa producer, signed a memorandum of understanding with its creditors in January after defaulting on most of its external debt in December 2022.
The 25 participating creditor countries also include the United States, Germany, and the United Kingdom, demonstrating broad international support for Ghana's economic recovery.
The International Monetary Fund (IMF) approved a $3 billion, three-year bailout for Ghana in May 2023 that helped stabilise Ghana's economy and led to a Fitch rating revision.
"The terms of the debt treatment offer a debt service relief of $2.8 billion during the Fund-supported programme period (2023-2026)," a parliamentary report seen by Reuters said.
Under the restructuring terms, debt service payments due between December 20, 2022, and December 31, 2026, will be rescheduled, capitalised, and repaid from 2039 to 2043, delaying repayments by over 15 years, the report said.
The Official Creditor Committee set interest rates at 1% to 3% to capitalise rescheduled amounts, depending on the original contractual rate, offering Ghana's treasury savings below market levels, the report said.
"The Committee noted that the debt restructuring was critical in supporting government to restore and sustain macroeconomic stability and debt sustainability," the report concluded, with lawmakers unanimously recommending approval.
Ghana continues negotiations with commercial creditors to complete its debt restructuring.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
China to overtake Australia as world's top lithium miner by 2026, Fastmarkets says
LAS VEGAS, June 25 (Reuters) - China by next year will overtake Australia as the world's top miner of the battery metal lithium, according to a forecast from consultancy Fastmarkets, and its market prowess is expected to grow through 2035 even as many Chinese producers remain unprofitable. The projections are the latest data point underscoring Beijing's commanding presence across the global metals supply chain, with China the dominant miner or refiner of more than half the minerals considered critical by the U.S. Geological Survey. "China's got a very clear strategy to develop its mineral resources," Paul Lusty, the consultancy's head of battery raw materials research, told Reuters on the sidelines of the Fastmarkets Lithium and Battery Raw Materials Conference in Las Vegas. Australia has been the world's largest lithium miner since taking that spot from Chile in 2017, but Australian miners have curtailed production or delayed expansions amid a global drop in lithium prices. By next year, Chinese miners are likely to extract 8,000 to 10,000 more metric tons of lithium than Australian rivals, according to the Fastmarkets forecast. That would be a jump from 2023, when China was the world's third-largest lithium producer. By 2035, Chinese miners are likely to extract 900,000 metric tons of lithium, compared to Australia's 680,000 metric tons, Chile's 435,000 metric tons and Argentina's 380,000 metric tons, according to the forecast. Much of China's growth has and likely will continue to come from mining a type of hard rock ore known as lepidolite, which is prolific in the southern part of the country. China's lepidolite mining is more costly than extracting lithium from salty brines and can cause more environmental harm due to toxic by-products such as thallium and tantalum that pollute water supplies. China's lithium miners have been reticent to cut production due to support from the Chinese government, "pressure" from local municipalities to keep operations open - and thus local jobs, and a desire to maintain market share as demand for the metal rises, Lusty said. "This continued production - despite the lack of profitability within the market - starts to make a lot more sense when you consider all those factors," he said. Chinese battery giant CATL ( opens new tab is one of the largest producers of lepidolite and had paused production at a key mine last September before resuming output in February. Beyond mining, China for years has been the world's largest refiner of the ultralight metal, with roughly 70% market share. Lithium refineries turn the metal into a form that can be used to make cathodes for batteries. Efforts by other countries to grow their own lithium refining should cut China's market share to 60% by 2035, Fastmarkets forecasts. China's market prowess also extends to electric vehicle supply chain, with more than 60% of all EVs globally sold last year in that country, according to data from battery producer LG Energy Solutions.
Reuters
2 hours ago
- Reuters
Exclusive: US allows ethane to be loaded and shipped to China, but not unloaded -- letter
June 25 (Reuters) - The U.S. sent letters to Enterprise Products (EPD.N), opens new tab and Energy Transfer (ET.N), opens new tab on Wednesday informing the companies they could load ethane on vessels destined for China but could not unload the ethane at a port in China without authorization, according to a person familiar with the matter and copy of one letter. The letters from the U.S. Department of Commerce follow earlier notifications to the companies that imposed a license requirement on exports of ethane to China. The companies are highly unlikely to risk loading the ethane on vessels and sending them on their way, the person familiar with the matter said. If the vessel makes its way to China, it may be difficult to stop its offloading and the companies risk penalties of up to twice the value of the ethane. "This letter authorizes Enterprise Products to load vessels with ethane, transport and anchor in foreign ports, even a party located in China," the letter said. "However, Enterprise Products may not complete such a party that is located in further BIS authorization." Enterprise Products and Energy Transfer did not immediately respond to requests for comment. The U.S. Department of Commerce also did not immediately respond to a request for comment. The ability to load and begin transporting ethane could relieve congestion at ports like those near Houston, where vessels have stalled amid restrictions on shipping the product to China.
The Independent
3 hours ago
- The Independent
Citroen e-C3 Aircross review: All-electric Family SUV That Offers Great Value
Showing now | Drive Smart 07:03 Citroen 's small SUV has proven hugely popular with buyers. Now it's gone all-electric features for those who want a stylish, spacious, small SUV that's good value. It has a whole new look inspired by the wacky Citroen Oli concept of 2023 – and Citroen is at its best when it goes wacky. It's got more room than ever – so much so that non-electric versions can squeeze seven seats inside. Watch more from Drive Smart on Independent TV.
