Ghana Bondholders Hire Advisers After Country’s Request for IMF Bailout

A group of Ghana’s foreign bondholders has hired advisers ahead of prospective debt talks with the government over a bailout the country hopes to get from the International Monetary Fund, according to people familiar with the matter, WSJ Pro reported. Holders of some of Ghana’s $14 billion in foreign-currency bonds have hired Rothschild & Co. as a financial adviser and Orrick, Herrington & Sutcliffe LLP as legal counsel. Once considered a poster child for development in Africa, Ghana has fallen on hard times as it carries a $55 billion debt load, most recently estimated by the government to be worth around 80% of its annual economic output. An accelerating cost-of-living crisis sparked protests early this summer in the capital, Accra, and the government formally requested support from the IMF in July. The IMF said last year that it considered Ghana’s public debt burden to be sustainable. However, Accra’s finances have taken a considerable hit from higher food and fuel prices sparked by Russia’s war in Ukraine, and the World Bank projected in October that Ghana’s debt-to-gross-domestic-product ratio would jump to nearly 105% by the end of the year. Read more.