Government secures $10 billion loan from Chinese Exim Bank

The Chinese Exim Bank has agreed to give Ghana a $10-billion loan to finance the construction and rehabilitation of some major roads and railway lines in the country.

Some four billion dollars of the loan will be used to build a railway line from Kumasi to Paga. It is one of the dividends of President Mills’ trip to China.

Energy infrastructure, education and sanitation are some other areas in the economy that will benefit from the facility.

Deputy Minister of Finance, Fifi Kwetey, one of the ministers who signed on behalf of government, told Joy Business from the Chinese capital Beijing that “the details of this framework will have to be subsequently entered into on a project by project bases.”

He adds the facility represents a sign of confidence in the Ghanaian economy.

The loan which is payable in 20 years would first have to be ratified by Parliament. It brings to $14 billion the facilities secured so far from China during President Mills’ visit.


Source: Joy Business/Ghana