Home Lifestyle and Culture Afreximbank loan: Govt did not receive less than $750m – John Kumah

Afreximbank loan: Govt did not receive less than $750m – John Kumah

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A Deputy Minister of Finance John Kumah has dismissed claims that the central bank received $713 million instead of the $750 million expected under the Afreximbank loan.

Regarding this loan agreement, Member of Parliament for Ajumako-Enyan-Esiam, Cassiel Ato Forson tweeted after 3business reported that the amount received was less than what was expected, that “Can someone at the ministry of finance & the Bank of Ghana explain why only $713m out of the approved $750m hit GOG’s Bank account?

“Where is the remaining $37m? For the avoidance of doubt, Parliament did not approve upfront fees amounting to $37m.”

But in a response, Mr Kumah said “I am surprised Hon. Ato Forson thinks liability of government under this facility only kicks in after 3-years. Let me reiterate to that it is the repayment of the principal which will be repaid after a moratorium of 3-years.

“The interest payment, however, starts 6 months after disbursement. Clause 11.1(a) of the agreement outlines as follows…. ‘the first interest period for a loan shall commence on the utilisation date of that loan and shall end on the date falling six-months after the date of this agreement.

“During the term of the NDC, escrow debt service accounts were established for many projects including; a) the CDB Facility for Ghana Gas, b) Kumasi Market Phase 1 and c), the kasoa Interchange Project.

 

“This arrangement is not new as the Ministry of Finance has from time to time created specialized Escrow accounts for specific purposes.

“In this particular transaction, an amount of USD37 million from the facility has been set aside for debt service obligations.

“All the documentation relating to this arrangement were supplied to and was approved by Parliament,” he stated.

 

By Laud Nartey|3news.com|Ghana

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