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The African Export-Import Bank (Afreximbank) has settled a dispute with Ghana over a $750 million loan, though it didn\u2019t disclose if it would take losses.<\/p>\n
Issues surrounding the facility signed in 2022 were resolved \u201cto the satisfaction of both parties,\u201d the Cairo-based lender said in a\u00a0statement\u00a0posted on its website Thursday, without providing details on the terms reached.<\/p>\n
Read: African countries need strong development banks<\/p>\n
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The standoff emerged after Ghana secured a\u00a0bailout\u00a0from the International Monetary Fund and took steps to restructure its debt following a 2022 default.<\/p>\n
Africa\u2019s top gold producer renegotiated more favorable terms on $13 billion of, $5.1 billion of bilateral loans and more than 200 billion cedis ($18 billion) of domestic debt, as part of the debt-restructuring exercise.<\/p>\n
When Ghana sought to rework the Afreximbank facility, the multilateral lender argued that its \u201cpreferred creditor status\u201d meant it shouldn\u2019t have to accept losses.<\/p>\n
This impasse, and a similar one with Zambia \u2014 which also moved to reduce its debt by seeking softer repayment terms \u2014 prompted Fitch Ratings to downgrade the bank\u2019s long-term debt by one notch to BBB- in June.<\/p>\n
Read:
Gold, platinum and silver smash records again
Ghana unlocks $367m disbursement from IMF after review
Zambia to remain in default with Afreximbank until debt reworked<\/p>\n
Moody\u2019s followed with a downgrade soon after, increasing the bank\u2019s cost of borrowing.<\/p>\n
Resolving the impasse will enable \u201cboth parties to continue to partner for Ghana\u2019s development agenda,\u201d Afreximbank said in the statement.<\/p>\n
\u00a9\u00a02025\u00a0Bloomberg<\/p>\n
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