HomeNewsWorldGhana to repay $3bn China loan with oil, resources

Ghana to repay $3bn China loan with oil, resources

Ghana will repay its USD 3 billion loan from the China Development Bank at an interest rate of 6-month Libor plus 2.95%, according to a Ghanaian parliamentary report on the loan seen by Reuters on Wednesday.

August 25, 2011 / 11:25 IST
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Ghana will repay its USD 3 billion loan from the China Development Bank at an interest rate of 6-month Libor plus 2.95%, according to a Ghanaian parliamentary report on the loan seen by Reuters on Wednesday.

At least 60% of the loan, which is due to finance infrastructure projects, including in the oil and gas sector, and is currently being debated in parliament, must go to Chinese contractors, the document said. Ghana and China are due to establish a contract to oversee China's offtake of Ghana's oil as part of the loan repayments. Ghana will also use other resources to repay the debt, the document said.
first published: Aug 25, 2011 08:45 am

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