Export-Import (EXIM) Bank of China rejects Ghana govt’s loan application

The Export-Import Bank of China (China Exim Bank) has rejected a loan application from the Ghana government which is aimed at constructing some major roads in the West African country.

According to officials of the bank, the roads concerned are not “financially beneficial”. The roads involved are Accra Ring Road Outer project, Mankessim-Agona Swedru-Nsawam and the Dodowa Kpong and Somanya Akuse Junction road reconstruction projects.

A letter sighted by Starr News advised the government of Ghana and the finance minister to consider other financing options.

The letter further said taking Chinese concessional loan will increase the country’s debt burden, Starr News’ parliamentary correspondent Kobby Gomez-Mensahreported.

“Having studied the documents for the above projects, we would like to advise you that, according to the current guidelines by Chinese government, the Chinese government concessional loan and preferential buyer credit are mainly directed towards projects with good financial benefits and repayment abilities,” Mr Ji Chun Regional Director of the Chinese government said in the letter.

“According to the relevant documents, these three road projects lack financial benefits, thus it appears that it’s not appropriate to utilize a Chinese concessionary loan to implement these project,” the letter added.

“Therefore regarding these three projects, we suggest that your Ministry take other financing resource into consideration.”