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IMF Approves $3 bn Chinese Loan   
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The Executive Board of the International Monetary Fund (IMF) has unanimously endorsed a limit of US$3. 4 billion on non-concessional borrowing for Ghana.

This paves way for the Ghana government to access the Chinese loan of $3 billion for its massive development projects next year.

The decision was part of the board’s report after completing the fifth review of Ghana’s economic and financial programme under the Extended Credit Facility (ECF) arrangement.

The new borrowing limit implies that Ghana can source for non-concessional loans up to US$3. 4 billion, which is unprecedented in the history of the IMF’s programmes with Ghana.

With this endorsement, it is expected that the political rancor over the ability of Ghana to raise amounts beyond the IMF approved limit will be laid to rest.

The Minister of Finance and Economic Planning, Dr. Kwabena Duffuor, who disclosed this to the Daily Graphic said, “During an IMF staff mission to Ghana in October 2011, the government requested the IMF Executive Board to modify the initial conditionality of limiting non-concessional borrowing by Ghana from the current limit of US$800 million to US$3. 4 billion.

“In asking for the modification, the government indicated that in the light of Ghana’s lower middle-income status and prospects of declining access to concessional financing, the government has negotiated, and intends to sign before the end of 2011, a US$3 billion loan on non-concessional but competitive terms with the China Development Bank (CDB).
Source: Daily Graphic

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