Private lenders reject Ghana debt relief deal

Reacting to the news that Ghana’s bondholders have rejected a restructuring proposal, Bernard Anaba, Public Policy Specialist at the Integrated Social Development Centre (ISODEC) in Ghana said:

“The breakdown in negotiations shows how difficult it will be to reach an agreement with the private bondholders without a process that forces them to do so. But they have to cancel significant portions of Ghana’s debt and, with no deal, it means more pain to the suffering poor in Ghana.”

Heidi Chow, Executive Director of Debt Justice, said:

“Banks, asset managers and hedge funds are once again holding up vital debt relief. Financiers lent at high interest rates, or bought debt at low prices, yet continually refuse to cancel debt when their bets go wrong. New laws in London and New York would ensure private lenders participate in international debt relief agreements. It’s blindingly obvious that these need be passed urgently.”

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