$750m Afreximbank loan received in full; $37m set aside for debt resolution – Gov’t

Deputy Finance Minister John Kumah says government has received the full loan amount of $750 million from the African Export-Import Bank (Afreximbank).

The disclaimer was issued after ranking member on the Finance Committee in Parliament, Cassiel Ato Forson made comments indicating the bank account of government had received only $713 from the total amount in the loan agreement.

Deputy Finance Minister, John Kumah in a statement on social media refuted such claims and explained the Ministry of Finance occasionally generates escrow accounts for certain resolutions, in this situation the sum of $37million was set aside by the Finance Ministry for debt servicing.

“This arrangement is not new as the Ministry of Finance has from time to time created specialized Escrow accounts for specific purposes. In this particular transaction, an amount of USD37 million from the facility has been set aside for debt service obligations. All the documentation relating to this arrangement were supplied to and was approved by Parliament,” he stated.

He added that government was appreciative of Afreximbank’s efforts and assured Ghanaians that the funds received will be used for infrastructure projects as Parliament agreed on.

Parliament approved a $750 million loan agreement with Afreximbank for funding infrastructure projects and budget support.

The loan is part of a $1 billion dollar facility, the government is seeking to shore up its reserves as well as to pay for several infrastructure projects across the country.

The Minority previously opposed the loan agreement but threw its weight behind it during the debate to avert what they termed as a collapse of the country’s economy if the loan was not approved.