Parliament Approves $750 Million Loan With Afrexim Bank

The $750 million agreement with Afrexim Bank, which is a part of a $1 billion plan to pay for national infrastructure projects and boost the reserve, has been authorized by parliament.

 

This follows vehement resistance from House Minority members who demanded an explanation of the projects included by the agreement.

 

The government had earlier indicated its plan to borrow a loan in Cedis worth $750 million under a syndicated term loan facility arrangement for the implementation of the 2022 budget in the 2022 Budget Statement and Economic Policy of Government.Following the government’s declaration that no Eurobonds will be issued in 2022 under the International Capital Market Programme (ICMP) until the market circumstances improved, the loan syndication strategy was adopted.

 

This was required because, at the time the 2022 Budget was approved, the proliferation of the new COVID-19 variants had resulted in the re-imposition of restrictions across the board, along with instances of fuel price increases and supply side disruptions, limiting access to the global capital market.

In the meantime, Ken Ofori-Atta, the finance minister, has been called into question for presiding over an economic crisis, according to Isaac Adongo, the Deputy Ranking Member of the Parliamentary Finance Committee.

Speaking on the floor of the parliament today, Mr. Adongo suggested that the finance minister resign or be fired if the nation wants to resolve its current economic issue.

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