Ghana resolves $750 million Afreximbank debt facility, boosting confidence in debt strategy

The Government of Ghana has successfully resolved a $750 million debt facility with the African Export-Import Bank (Afreximbank), ending weeks of uncertainty over how the loan would be treated within the country’s broader debt restructuring programme.

Finance Minister Dr. Cassiel Ato Forson said the agreement addresses all outstanding issues related to the 2022 facility, satisfying both parties and enabling Ghana and Afreximbank to continue collaborating on the nation’s development agenda.

On his official Facebook page on December 25, the Finance Minister noted that the resolution allows the Government of Ghana, through the Ministry of Finance, and Afreximbank to move forward collaboratively, reinforcing confidence in the country’s debt management strategy.

Following Ghana’s recent debt restructuring, the government had sought for Afreximbank’s loan to be treated similarly to other restructured debts, including China’s bilateral loans and $13 billion in eurobonds.

Typically, debt restructurings involve extending payment deadlines, reducing interest rates, or granting partial losses, known as “haircuts,” to support a country’s recovery.

Initially, Afreximbank resisted, citing its “preferred creditor status,” a designation that usually ensures repayment in full ahead of other creditors.

The disagreement had raised concerns that it might delay Ghana’s debt resolution and affect how regional lenders are treated in future African debt negotiations.

The successful resolution not only secures Ghana’s relationship with a key regional lender but also sets a precedent for smoother negotiations with other creditors, reinforcing the country’s commitment to fiscal responsibility and macroeconomic stability.