Dr Cassiel Ato Forson, Minister of Finance
Ghana is reportedly engaged in a dispute with the African Export-Import Bank (Afreximbank) over the treatment of a $768.4 million loan as part of its broader debt restructuring initiative.
According to a report by bloomberg.com, the contention centers on Afreximbank’s assertion of “preferred creditor” status, a designation typically reserved for institutions like the International Monetary Fund (IMF) and the World Bank, which exempts them from debt restructuring.
Afreximbank maintains that its founding treaty, ratified by member states including Ghana, prohibits the restructuring of its loans.
However, the report added that Ghana’s Former Finance Minister, Dr Cassiel Ato Forson, had stated that the government does not recognise Afreximbank’s claim to preferred creditor status and considers its debt as part of the restructureable envelope.
This disagreement arises as Ghana has made significant strides in its debt restructuring process, having completed agreements with official creditors and Eurobond holders.
The country is now focusing on the remaining 7 percent of its external debt, which involves negotiations with commercial creditors, including Afreximbank.
The outcome of this dispute could have implications not only for Ghana but also for other African nations facing similar debt challenges, such as Zambia, Kenya, and Ethiopia.
ID/MA
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