Finance

Ghana likely to lose mineral, electricity revenue to China due to loan defaults – IMF

The International Monetary Fund (IMF) has disclosed that the Chinese government would likely have access to Ghana’s mineral revenue and electricity revenue due to the government of Ghana’s failure to honour its loan agreement.

According to a news report by myjoyonline.com, the fund indicated that this might happen because the government of Ghana is at risk of not being able to repay four loans it acquired from the Chinese government which it collateralised with Ghana’s mineral resources and electricity sales.

The report indicated that Ghana for the past decade acquired at least eight collateralized loans from China with different mineral resources as security against default.

It added that as at the end of 2022, collateralized loans amount to $619 million of the $1.9 billion loan agreements Ghana has with China.

The IMF indicated that $619 million in loans were acquired between 2007 and 2018 and they were collateralised with Ghana’s cocoa, bauxite and oil and electricity revenue.

“Collateralized debt is any contracted or guaranteed debt that gives the creditor the rights over an asset or revenue stream that would allow it, if the borrower defaults on its payment obligations, to rely on the asset or revenue stream to secure repayment of the debt,” the IMF was quoted by myjoyonline.com.

“Statutory funds will not be allowed to collateralize revenue streams and issue debt. No objection certificates will not be issued to any statutory fund by the governing authority in this regard,” it added.

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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