Bank loan

$750m loan from Afrexim Bank reaches Bank of Ghana accounts

The loan, which is part of a $1 billion facility, reached the Central Bank on Thursday, August 25, 2022.

According to Citi Business News sources at the Department of Finance, the $750 million is split into three tranches of $332 million, $187 million and €193 million.

The amount has since been transferred to the Bank of Ghana for an equivalent in cedi to help bolster the central bank’s reserves.

Proceeds from the loan, the government says, will help shore up its reserves, which stood at $7.68 billion in June 2022, a move that could help slow the rate of depreciation of the local currency against the dollar.

The government is also happy to use the money to fund some infrastructure projects.

It will be recalled that the Government had expressed its intentions in the 2022 Budget Document and the Government’s Economic Policy raise up to the equivalent of $750 million in Ghana cedi under a syndicated term loan agreement to support the implementation of the 2022 budget.

The loan syndication approach was chosen following the government’s announcement that no Eurobonds would be issued in 2022 under the International Capital Market Program (ICMP) until the market conditions are improving.