LONDON (Reuters) – Ghana picked financial advisers Lazard (NYSE:LAZ) and Global Sovereign Advisory (GSA) as it prepares for a rework of its overseas and domestic debt, according to four people familiar with the matter.
The West African nation has chosen Hogan Lovells as its legal adviser, added two people, who asked not to be named because formal talks between the country and the private creditors haven’t started.
Investment bank Lion’s Head Global Partners (NYSE:GLP) is also advising the government, one of the people said, though mainly focused on domestic notes issuance.
The country’s Finance Ministry did not respond to a request for comment.
Ghana, which produces gold, cocoa and oil, has seen its cedi currency plummet by more than 50% against the dollar this year, making it one of the worst-performing currencies in a region that is suffering from a global economic slowdown.
The debt talks also come in the midst of a political crisis for the government.
Ghana’s President Nana Addo Akufo-Addo has terminated the appointment of Charles Adu Boahen, the minister of state at the ministry of finance, after allegations of impropriety. Adu Boahen did not immediately respond to a request for comment from Reuters.
Peaceful protesters on Ghana’s capital Accra have previously called for the resignation of the president.
While the government still hasn’t said whether it will move forward to rework its debt, some international bondholders are close to announce a formal group for negotiations. The creditors have chosen Rothschild & Co and Orrick, Herrington & Sutcliffe LLP as advisers.
Rating agency Fitch in late September downgraded the country to CC from CCC, saying the cut deep into junk reflected the increasing likelihood that Ghana would pursue a debt restructuring in the face of mounting financing stress.
The country is expected to present its 2023 budget on Nov. 24, and an International Monetary Fund staff mission is expected to visit the country shortly afterwards.
The nation had reached out to the Washington-based lender for financing aid in July, despite previous pledges from the government to not seek its assistance.
Source: Economy - investing.com
