Ghana's dollar bonds drop after govt announces "shock therapy" spending cuts

Ghana's international dollar-denominated bonds slid by nearly 1.5 cents on Tuesday after Finance Minister Cassiel Ato Baah Forson said the country needs 'shock therapy' spending cuts.

The 2035 maturity (XS2893151287=TE) led declines, falling by around 1.5 cents to an 8-week low before retracing to 1.15 cent loss, bidding at 70.61 cents on the dollar , Tradweb data showed.

In the first budget presentation under President John Dramani Mahama, Forson said the government also faced significant external debt service costs over the next four years.

Ghana finalised a restructuring of $13 billion worth of international bonds in October after a painful 2022 debt default.