Afreximbank has informed investors that Ghana is current on its loan repayments, potentially stirring conflict with other creditors already accepting losses.
Two sources told Reuters that during a May 15 call, Afreximbank said Ghana and Malawi were “up to date” on their loan facilities, implying no arrears.
This statement contrasts with Ghana’s ongoing commercial debt restructuring, necessary after its $13 billion bond and official debt deal concluded last year.
Afreximbank, like the IMF and World Bank, claims exemption from losses during defaults, complicating Ghana’s debt negotiations with multiple lenders.
The Paris Club and official creditors insist Ghana and Zambia must restructure debts owed to Afreximbank and the Eastern and Southern African Trade and Development Bank.
Ghana responded Thursday that it remains in arrears with all eligible external creditors and denies preferential treatment to any lender.
The government recently told Bloomberg it plans to restructure its Afreximbank loans, despite the bank’s statement it is not participating in restructurings.
Ghana defaulted in 2022 amid global economic shocks, triggering its worst crisis in decades with severe impact on its gold, cocoa, and oil sectors.
The country owes Afreximbank at least $750 million, nearly a quarter of its $4 billion commercial debt, according to think tank ODI Global.
The timing of loan repayments remains unclear, yet Ghana’s bond restructuring includes clauses preventing preferential treatment of commercial creditors.
Experts say Ghana, Malawi, and Zambia face a tough dilemma navigating creditor demands amid tightening financial conditions in Africa.
Afreximbank, with a $42 billion balance sheet and diverse shareholders, plays a key role as concessional finance dwindles on the continent.
If its loans require restructuring, Afreximbank’s credit rating may suffer, increasing its borrowing costs, Fitch and Moody’s ratings currently stand at ‘BBB’ and ‘Baa1’.