A spokesperson for the World Bank confirmed that the IDA made the guarantee payment of close to $50 million on April 20.
The $400 million guarantee by the multilateral lender on the $1 billion issue back in 2015 was designed to provide extra security under "challenging market conditions" in case the West African country failed to pay.
Like other smaller, riskier emerging market countries including Sri Lanka and Zambia, Ghana faces a debt overhaul after its already strained finances buckled under the economic fallout from COVID-19 and Russia's invasion of Ukraine. The West African country secured a staff-level agreement with the International Monetary Fund for a $3 billion support package in December, but it is still awaiting the Fund's executive board approval for disbursements to begin. As the country is negotiating its international debt rework under the Group of 20's Common Framework platform, it first needs financing assurances from bilateral lenders such as the Paris Club and China before fully securing the IMF deal.
Despite the recent coupon payment, the country's finance minister Ken Ofori-Atta said during a presentation to investors on April 14 that the 2030 bond will be part of the debt restructuring with private bondholders.
"It makes restructuring a bit more complicated, both in terms of the process with the World Bank and then with bondholders," said Stuart Culverhouse, chief economist and head of fixed income research with Tellimer.
Ghana's dollar-denominated debt is $14.6 billion across maturities ranging from 2023 to 2061, according to government data. The country also aims to restructure $5.4 billion with bilateral creditors. (Reporting by Karin Strohecker and Jorgelina do Rosario, additional reporting by Libby George, editing by Dhara Ranasinghe)
