https://www.myjoyonline.com/afreximbank-loans-to-be-exempted-from-debt-restructuring-report/-------https://www.myjoyonline.com/afreximbank-loans-to-be-exempted-from-debt-restructuring-report/
Minister of Finance, Ken Ofori-Atta

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.

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