Afreximbank said to have absorbed losses on $750 million Ghana loan

The African Export-Import Bank (Afreximbank) will take losses on a $750 million loan to Ghana following the resolution of a dispute over the facility, sources familiar with the matter told Bloomberg.

On Thursday, Afreximbank announced that it had resolved the dispute with Ghana over the loan, but did not disclose whether it would formally absorb the losses on the debt.

The Cairo-based lender said issues surrounding the 2022 facility had been settled “to the satisfaction of both parties,” without providing details of the agreement.

The disagreement arose after Ghana initiated a debt restructuring following its 2022 default. The country renegotiated terms on its eurobonds, bilateral loans, and more than 200 billion cedis ($18 billion) of domestic debt.

Ghana also sought to include the Afreximbank loan in the restructuring, but the Cairo-based lender initially resisted, citing its preferred creditor status, which traditionally shields it from taking losses.

Sources said Afreximbank agreed to the restructuring terms set by an official creditor committee, coordinated under the Group of 20 Common Framework, and would take losses, though the exact amount was not disclosed.

Ghana’s Ministry of Finance said the resolution marks a key step in efforts to restore external confidence, adding that its relationship with Afreximbank remains strategic.

For Afreximbank, however, taking losses could have repercussions on its creditworthiness. Fitch Ratings and Moody’s had previously flagged this risk when downgrading the bank’s rating this year.

Fitch cut its long-term debt rating to BBB- with a negative outlook in June, and Moody’s followed suit, raising the bank’s borrowing costs.