Amended US$3b loan still stinks – Akoto Osei

The Finance Committee of Parliament’s ranking member, Dr. Anthony Osei Akoto, has described the US$3 billion Chinese Development Bank (CBD) loan agreement as a “very bad loan structure” despite its second amendment.

The Old Tafo MP tells XYZ News Ghana is burdened with the payment of one percent of the commitment fee as far as the undrawn and un-cancelled balance of the loan is concerned, despite non-receipt of the facility due to the error-riddled nature of the agreement.

“As it is now, we are stuck with a very bad loan structure”, Dr. Akoto Osei asserted.

He warned that: “Until we are able to draw the money, we’ll continue to pay one percent”.

“What sense does it make?” He queried, adding that: “If you are not ready to absorb, why do you keep paying money?”

The opposition Legislator claimed Ghana has already paid 30 million dollars to the Chinese Development Bank due to the non-disbursement of the first tranche of the loan.

He also says the 15-year repayment date for the first tranche of 1.5 billion dollars is a blatant violation of Ghana’s Petroleum Management Act, which bars such agreements from going beyond 10 years.

Dr. Akoto Osei, therefore, wonders why the Government of Ghana has been persistent in pushing the deal through despite its faults.

“This is the second amendment we are doing to one agreement, and there are still issues with it”, Dr. Akoto Osei noted.

However the Vice Chairman of the Finance Committee, Kojo Esiri tells XYZ News all the necessary tidying up of the agreement has been done to pave the way for the disbursement of about one billion of the first tranche in the next few months.