Member of Parliament for Okaikoi Central, Patrick Yaw Boamah, has expressed grave concern over Ghana’s deteriorating relations with the African Export-Import Bank (AfriExim Bank), cautioning that unresolved tensions could have long-term financial consequences for the country.
Speaking in a recent interview, the MP, who is also a lawyer and member of Parliament’s Finance Committee, criticized the Government’s handling of communications with AfriExim Bank and urged the Ministry of Finance to swiftly address the fallout, which has led to a downgrade in Ghana’s credit relationship with the bank.
“AfriExim Bank has downgraded Ghana to a negative position, and it’s something that should be a concern to many people. I’m a lawyer, but I’m also a student of economics, and I’ve followed through,” Boamah stated.
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He revealed that one of the bank’s grievances stemmed from sensitive communications between the institution and the Government of Ghana being leaked to the media before officially reaching the bank.
Boamah reminded the public of AfriExim Bank’s consistent support to Ghana, particularly prior to the International Monetary Fund (IMF) bailout in 2023. He pointed out that the bank provided a crucial $750 million loan that helped stabilize Ghana’s reserves and addressed the balance of payment needs.
At the heart of the dispute, the MP explained, is a disagreement over how AfriExim Bank’s facility should be classified in the context of Ghana’s debt restructuring efforts. According to Boamah, the Government treated AfriExim’s facility as a commercial loan, while the bank expected treatment similar to that afforded to multilateral institutions like the World Bank and IMF.
“The government believes that it was a loan and that they were not treating AfriExim as a multilateral institution. You see, facilities from the World Bank and the IMF are exempt from the debt restructuring program per the Official Creditor Committee,” Boamah said.
The implication, he continued, is that if AfriExim is categorized as a commercial lender, its facilities will not enjoy the exemptions that multilateral loans do. This would disadvantage the bank and possibly strain future lending relations.
“So if you include facilities from AfriExim, it means they are going to be treated as commercial facilities and they will not enjoy the same terms as facilities from the World Bank which are exempt,” he warned.
Boamah called on the Finance Minister to act swiftly to mend the strained relationship, emphasizing AfriExim’s vital role in Ghana’s financial recovery and development agenda.
“Whatever the case is, he [the Finance Minister] must find a very sound way or reasonable means of resolving issues with AfriExim. Because it can bite us one day,” Boamah advised.
Hon. Boamah also disclosed that AfriExim has raised concerns about Ghana’s dealings with the World Bank, suggesting that the finance minister needs to be cautious in managing Ghana’s relationships with all major financial partners.
By Osumanu Al-Hassan/thenewsbulletin24.com