Audio By Carbonatix
Finance Minister, Ken Ofori-Atta, intends to shield loans received from the African Export and Import Bank (Afreximbank) from the ongoing debt restructuring efforts.
As Ghana grapples with a severe economic crisis and aims to renegotiate $20 billion in external debt to secure better terms and recover from the financial challenges, Afreximbank loans are also expected to be exempted.
To qualify for the next instalments of the $3 billion loan agreement with the International Monetary Fund (IMF), Ghana aims to reduce its external debt repayments by $10.5 billion over the next three years.
According to Reuters, Ofori-Atta expressed determination to exempt the lending partner despite the challenges, stating, "I have to find a way to do it. It's difficult, but we will force and we will see."
He acknowledged the invaluable support provided by Afreximbank during Ghana's most challenging times.
In July 2022, when Ghana faced limited access to global capital markets due to soaring yields on its international bonds, credit rating downgrades, and currency depreciation, it secured a $750 million loan from Afreximbank.
Afreximbank asserts that its loans should be exempt from debt restructurings, considering its classification as a multilateral development lender.
The bank cites the treaty signed by Ghana, which prohibits subjecting its loans to moratoriums and restructuring.
Discussions regarding the treatment of Afreximbank loans are yet to be addressed by the creditor committee, which includes the Paris Club and coordinates negotiations with developed creditor nations.
Ghana's debt restructuring involves some $5.4 billion owed to China and Paris Club members out of the total $20 billion external debt as of the end of 2022. The overall external debt stood at $30.5 billion.
In the coming weeks, Ghana aims to reach agreements with its bilateral creditors, according to Ofori-Atta's statement during a recent news conference.
The loan from Afreximbank obtained last year by Ghana amounted to up to $750 million, with a seven-year tranche split into €100 million ($109.3 million) at an interest rate of 6.49%, including fees, and $101 million at 9.55%.
Another tranche of $350 million was for a duration of 10 years with an interest rate of 9.33%, as approved by Parliament.
Latest Stories
-
UTAG-UG demands resignation of GTEC bosses over ‘incompetent administration’
15 seconds -
Automated sampling removed bias in NPP delegate survey – Dr Evans Duah
11 minutes -
Bui Power Authority calls for urgent action against galamsey upstream of power plant
12 minutes -
Well-funded NGOs now controlling curriculum development in Ghana – ex-NaCCA head reveals
19 minutes -
Ibrahim Osman joins Birmingham City on season-long loan from Brighton
26 minutes -
IES defends NPA price floor policy amid debate over fuel pricing
27 minutes -
13 schoolchildren killed after bus collides with lorry in South Africa
29 minutes -
Moroccan FA to take legal action with CAF and FIFA over Senegal stoppage in AFCON final
39 minutes -
Arise Ghana set to picket US Embassy over Ofori-Atta’s return to face justice
49 minutes -
NPP Primary: Only Kennedy Agyapong is likely to secure 50%+1 votes – Researcher
50 minutes -
NPP sold over 300 Metro Mass buses amongst cronies in 2020 – Deputy MD
58 minutes -
Research highlights delegate behaviour ahead of NPP primaries
58 minutes -
Medical Kalabule: Inside Ridge Hospital’s system that exploits patients [Part One]
1 hour -
FosCel founder calls for integration of sickle cell education into Ghana’s school curriculum
1 hour -
GCB Bank rewards first 10 winners in ‘Pa To Pa Promo’
1 hour
