Investors holding Ghana’s International bonds are set to stomach a 30% loss and forego some interest payments.
The loss comes as a part of Ghana’s debt restructuring as it bids to meet the requirements for a loan from the International Monetary Fund (IMF).
John Kumah, Ghana’s Deputy Finance Minister, disclosed the plan during an interview with a local radio station.
The move comes four weeks after President Nana Akufo-Addo rebuffed speculations that some investors may lose money due to the ongoing negotiations.
Ghana is currently negotiating a $3 billion program with the IMF.
The Ghanaian government is also considering three-year suspensions of interest payments on foreign bonds and principal reductions.
The debt restructuring is intended to help Ghana meet sustainability requirements to qualify for the IMF bailout it has been negotiating since September and possibly reach a staff-level agreement with the Washington-based lender by year-end.