Fitch to move Ghana out of sovereign default by July 2025

Fitch Ratings expects Ghana to emerge from sovereign default by July 2025, anticipating the completion of external debt restructuring by June 2025. The agency is optimistic that Ghana will finalize non-bond debt treatments by the end of 2024.

In a recent webinar, Thomas Garreau, Fitch’s Associate Director for Sovereign Ratings, noted that while the restructuring under the Common Framework is expected to be completed in the first half of 2025, the process might be delayed due to elections.

Ghana’s agreement with the Official Creditor Committee (OCC) on official debt treatment was reached in January 2024, and in October, a Eurobond exchange restructured US$14.2 billion of debt.

This restructuring reduces Ghana’s interest payments by 8% in 2024, 5% in 2025, and 4% in 2026.