Business News of 2014-01-10

‘Political power play delaying CDB Loan’

An afro-China analyst, Dr. Lloyd Amoah has attributed the delay in disbursing the 3 billion Chinese Development Bank (CDB) loan to the political power play in China.

He pointed out that the amount involved attracts the interest of key power brokers in China and could be the reason for the delay.

President John Mahama on Thursday appealed to the visiting Chinese Foreign Minister to help in expediting the release of the loan.

So far, only $600 million of the loan has been disbursed although Ghana is paying commitment fees on the full amount.

Dr. Amoah in an interview on the Citi Breakfast Show said China, by its nature would want to properly assess Ghana’s capabilities to pay back the loan before disbursement.

He explained that although the CDB seems like a separate entity, but “the key power brokers in Beijing will be interested in who and on what basis the CDB gives out loans.”

According to him, international economic relations the world over “are inter linked with politics and with power and so especially for this case, the issue of politics comes in.”

Dr. Amoah also agreed to suggestions that the delays in the disbursement of the 3 billion CDB loan could be as a result of Ghana’s failure in handling its immigration challenges.

He explained that Ghana’s immigration challenges raises questions about whether or not Ghana is alert, organized.

Meanwhile, IMANI Ghana, a group that predicted the delay in release of the CDB loan says the delay of the loan is just another proof that government cannot tolerate dissent.

The Vice President of IMANI Ghana, Kofi Bentil expressed the hope that “government will do a better job…and save ourselves all these things” because according to him, what is happening “is an example that we are not doing things right and the effect of it is serious.”

A total sum of US$ 3 billion is expected from the China Development Bank.

The agreement which was signed in 2011 and the funds were expected to be released in time to help government begin work on several infrastructure projects.