- Ghana is negotiating for a $750 million loan with two banks
- The loan will be used to fund or refinance development projects
- According to the proposal before Parliament, it will also be used for liability management
Information available to YEN.com.gh shows that the government of Ghana is in discussions with two banks for a $750 million loan facility.
According to a report by Bloomberg, the loan will be repaid with the proceeds of a Eurobond sale.
Graphic.com.gh reports that the ministry of finance has listed the proposal for the syndicated loan on Friday, March 8, 2019.
It added that the loan is intended to “fund or refinance development projects and for liability management,” according to the document.
The chairman of Parliament’s finance committee, Mark Assibey-Yeboah, informed Bloomberg via phone that the facility will be a short term loan.
The move has become necessary because Ghana needs $2 billion to help finance the 2019 budget.
An additional $1 billion will be taken if the government is able to secure loans or securities at lower rates than it is paying for existing liabilities.
In February 2019, the government appointed five banks, including StanChart and Johannesburg-based Standard Bank, as lead arrangers for a Eurobond sale, according to people familiar with the matter, reports Bloomberg.
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