China has expressed its strong disapproval of the inaccurate reporting by the Ghanaian media regarding Ghana’s recent $3 billion Extended Credit Facility obtained from the International Monetary Fund (IMF).
During a meeting held on Wednesday, May 24, 2023, between the Head of Mission from Ghana, H.E. Dr. Ni Okai Hammond, and the Director-General of the Africa Affairs Department of the Chinese Ministry of Foreign Affairs, Amb. Wu Peng, China raised concerns about distorted facts in the media and their detrimental impact on the existing positive relations between the two countries.
Amb. Wu Peng lamented the misleading reports, which are creating an environment that undermines the sustenance of the good relations between Ghana and China. He emphasized that such false narratives contradict China’s stated policy of cooperation with developing countries, including Ghana.
China’s concern arises from widespread media reports suggesting that in the event of loan defaults, China would gain access to Ghana’s mineral revenue and electricity sales. These reports stated that Ghana’s four collateralized loans from China, totaling $619 million and signed between 2007 and 2018 for infrastructure projects, could potentially expose the country to the risk of losing portions of its mineral resource revenue, including proceeds from oil, cocoa, bauxite, and electricity sales.
The reports further implied that if Ghana were to default on its debt obligations to China, China would have the right to utilize the proceeds from these commodities to settle the debt.
Amb. Wu Peng categorically denied these reports, clarifying that such allegations were unfounded and contradicted China’s cooperation policy with developing countries. He emphasized that similar allegations were being circulated in other developing nations such as Malawi, Chad, and Zambia.
Amb. Wu Peng stressed that China’s lending policies and renegotiation processes were not as portrayed in the media. He stated that these policies were founded on principles of mutual benefit and cooperation with developing countries.