The African Export-Import Bank said it has resolved a dispute with Ghana over a $750 million loan facility, but did not disclose whether it agreed to absorb losses on the debt.
In a statement posted on its website on Thursday, 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.
Afreximbank, one of Africa’s largest multilateral development lenders, extended the loan to Ghana in July 2022 after the country lost access to international capital markets following a series of credit rating downgrades.
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The funds were disbursed the following month in three tranches of $187 million, €193 million and $332 million to support Ghana’s balance of payments and trade finance needs.
Preferred creditor status
As Ghana’s debt burden worsened, the government launched a restructuring programme covering about $13 billion in Eurobonds and bilateral loans from China. It argued that Afreximbank should be treated as a commercial creditor and accept losses as part of the process.
In restructuring, lenders often agree to extend payment deadlines, reduce interest rates, or take partial losses (called “haircuts”) to help a struggling country recover.
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But Afreximbank says it should not have to take any losses. The Cairo-based bank says it holds “preferred creditor status,” a designation enjoyed by the International Monetary Fund and the World Bank.
This status means that their loans are repaid in full, ahead of other creditors, and are not subject to restructuring.
In June, Fitch Ratings downgraded Afreximbank to BBB- from BBB, citing uncertainty over the lender’s exposure to Ghana and Zambia, where comparable disputes had emerged.
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.
