Ghana’s 2030 FUD Bond

We learned a new term a few days ago: FUD. Apparently common in the crypto world, it refers to when panic about something spreads “fear, uncertainty and doubt.” An investor friend used the term to describe aspects of the Ghana 2030 bond. We had previously thought this bond was safe, since it benefits from a World Bank guarantee. But reading the contract terms more closely, the FUD has rubbed off on us. It isn't clear to us that the bond will escape the restructuring. Of course, it could be left out of the restructuring and be paid in full. But why would Ghana and holders of non-guaranteed bonds want this? If it is included in the restructuring, it could end up with the same treatment as everyone else, without getting better treatment on account of the guarantee. Time will tell.

Producer: Leanna Doty