Commentary: Debt Talks Just Got More Complex With Ghana Political Upheaval

Even as Ghana takes its third big step to extricate itself from debt distress, bond investors face a new complication: political uncertainty, according to a Bloomberg News commentary. The West African nation’s government reiterated it has sought relief from bilateral lenders including the Paris Club and China under the Group-of-20 Common Framework. The move follows an offer to local-currency bondholders for a debt swap with coupon reductions and a unilateral move to suspend payments on external debt. While the process could prove arduous at the best of times, it’s coming just when Ghana faces political change. The ruling New Patriotic Party will pick its next president later this year and two ministers have quit in the past week presumably to join the leadership race. While that could bring new faces and a new approach to the negotiating table, general elections due 2024 mean there’s no guarantee the next government will abide by anything that’s agreed. Read more.