Ghanaian President Nana Akufo-Addo is facing an economic crisis in his country ©Getty Images

The Ghanaian Government has started formal negotiations with international bondholders in a bid to tackle its financial troubles before staging next year's delayed African Games in Accra.

Non-disclosure agreements have reportedly been signed by the advisors of both parties, marking the official start of debt talks.

International bondholders account for the biggest chunk of Ghana’s external debt, owing them about $13 billion (£10.5 billion/€12 billion).

It is reported that Bermuda-based financial advisory firm Lazard will represent Ghana in the private talks, while Rothschild, which is based in France, is expected to advise the international bondholders.

"The Government and the bondholders are sharing sensitive material through the advisers, like the revenues that could be used to service the debt and the restructuring parameters the creditors are aiming for," a source told Reuters.

The talks come after Ghana struck a deal with the International Monetary Fund (IMF) for a $3 billion (£2.5 billion/€2.8 billion) bailout last December to help stabilise the economy.

Under conditions set out by the IMF, the Ghanaian Government, led by Nana Akufo-Addo, must restructure its domestic and external debt.

Ghana owes about $13 billion to international bondholders as it looks to restructure its debt ©Getty Images
Ghana owes about $13 billion to international bondholders as it looks to restructure its debt ©Getty Images

Ghana's domestic debt reportedly amounts to $19 billion (£15.4 billion/€17.5 billion), while external debt totals $36 billion (£29.2 billion/€33.1 billion).

As part of Ghana's efforts, a domestic debt exchange programme was launched at the start of the year.

As well as starting talks with international bondholders over the external debt, Ghana has also begun negotiations with China which is owed around $1.9 billion (£1.5 billion/€1.7 billion).

The build-up to the African Games has been overshadowed by the economic crisis which is gripping Ghana.

The Games were scheduled to be held in August this year, only to be postponed due to financial problems and disagreements between Africa's sporting confederations and the African Union over marketing rights.

Ghanian capital Accra is set to play host from March 8 to 23 next year.