Economic Watch Africa takes on govt over US$100m GEXIM credit facility

Ghana’s export and industrialization drive is likely to experience major setbacks in the wake of the government decision to borrow US$100 million credit facility from offshore investors to support the operations of Ghana Exim bank, (GEXIM).

According to the Economic Watch Africa, the government would mortgage the country’s industrialization, especially the One District, One factory if it fails to suspend this transaction immediately.

“How can we mortgage the country’s export opportunities because of this paltry US$100 million”, the statement quizzes.

“We are asking the government to hold back to this transaction. The US$100 million facility which is just a drop in an ocean would come with so many conditions, which means that everything that GEXIM would do, it has to seek approval from them ”, it said.

Recently, the government constituted a committee to investigate the free fall of Ghana’s fiat currency, the Cedi, of which many economic chieftans believe that the solution is to strengthen the country’s export base.

The Economic Watch Africa is of the strong belief that the US$100million facility cannot finance the country’s export program, arguing that the government needs to look for better alternatives.

According to a statement issued in Accra,” we are not quite enthused about the government decision to borrow this lesser amount, whilst an institution in France is seeking to lend up to US$200 million to GEXIM under the same terms for the advancement of the government’s beyond aid agenda”.

“You cannot limit a development bank to US$100 million, if the opportunity is there why don’t you go for the higher amount, more especially when the EXIM bank needs money to support government’s flagship programme, the One District, One Factory” said Elikem Agbenyegah, the Convener of the group.

The Economic Watch Africa has learned that there is currently a confusion and frustration at the Ministry of Finance over the decision of the government to borrow US$100 million from Europe for EXIM Bank when an institution in France is ready to borrow up to US$200 million to support GEXIM’s operations.

“The Economic Watch Africa is reliably informed that some senior officials at the Ministry of Finance are being coerced to support the lesser amount which has a shorter tenor and higher interest rate than the higher loan amount. We are appealing to the President, Nana Addo Dankwa Akufo- Addo to intervene and also stop the process as he did in the PDS saga”, the statement said.

Source:ghanaweb

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