Ghana’s Opposition Leader Seeks IMF Views On His Country’s $2bn Chinese Bauxite Deal

Ghana’s opposition leader in parliament has requested the International Monetary Fund (IMF) to decide whether a $2 billion Chinese deal agreed by the  Ghanaian Government in exchange for bauxite will add to the country’s debt burden.

Naija news understands that the deal was approved by Ghanaian lawmakers last month for road projects in exchange for refined bauxite exports.

The ministry of finance and govt of Ghana have been unable to provide sufficient information on this Ghana-China deal. This govt owes the Ghanaian people transparency. – Haruna Iddrisu #JoySMS

— Joy 99.7 FM (@Joy997FM) August 23, 2018

The minority leader in parliament Haruna Iddrisu who made request said  his side considers the deal to be a loan with implications for an already over-burdened taxpayer, and had written to seek the IMF’s verdict.

He said the decision to write to the IMF stemmed from past statements by the government that debt servicing costs were among the factors constraining Ghana’s development program.

We just want thig govt to be forthright that this Ghana-China deal is a loan, and not barter as they claim. – Haruna Iddrisu #JoySMS

— Joy 99.7 FM (@Joy997FM) August 23, 2018

“It is our strong belief that this Sinohydro deal is a loan which is coming to add to the debt stock and we are concerned about the burden of additional borrowing cost on the over-burdened taxpayer,” Iddrisu said.

IMF Ghana chief Natalia Koliadina who also confirmed her office had received the letter said . “We have received information from the parliamentary minority regarding the Ghana-China bauxite deal. We will need to have more information to determine the nature of the transaction.“