July 16, 2014 / 3:35 PM / 3 years ago

UPDATE 1-Ghana will not draw second half of $3 bln China loan-govt

(Adds quote and details)

ACCRA, July 16 (Reuters) - Ghana will not draw the remaining $1.5 billion tranche of a $3 billion loan agreed with China in 2011 due to disagreements over the terms of the deal, Ghana's finance minister said on Wednesday.

The loan, split into two equal tranches and approved by Ghana's parliament in 2011, was intended to finance infrastructure projects including development of the oil and gas sector.

Finance Minister Seth Terkper said tranche B, which includes funding for the construction of a gas processing plant, would be fully disbursed.

"The proposal is to ... then cancel the tranche A which has not been disbursed because of the difficulties and challenges that we have had in coming to an understanding with CDB (China Development Bank)," Terkper said, without giving details.

The cancellation of the loan comes as Ghana is struggling to restore stability to its economy, hit by rising inflation and a widening budget deficit. (Reporting by Kwasi Kpodo; Writing by David Lewis; Editing by Andrew Roche)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below