• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Finance expert urges Ghana to pursue lengthy repayment plan in China debt negotiations

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
213
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

RelatedPosts

Chamber of Mines Pushes for Longer Stability Agreements to Safeguard Ghana’s Mining Competitiveness

Why Shorter Mining Leases Could Cost Ghana Big Projects and Jobs

Gold Price Hits Record High as Investors Seek Safety

Finance expert urges Ghana to pursue lengthy repayment plan in China debt negotiations

Williams Peprah, an Associate Finance Professor at Andrews University in Michigan, U.S.A, has advised the Government to pursue a protracted repayment plan in negotiations with China over its external debt.

In his analysis, Prof. Peprah emphasized that China, with its geopolitical ambitions, is not inclined to reduce interest rates on debts and relies heavily on interest payments as a significant income source.

Speaking to Joy Business, Prof. Peprah cautioned that Ghana risks losing time if it does not opt for an extended debt repayment structure. He underscored that the Chinese government, considering its approach with other nations like Zambia and Sri Lanka, tends to resist debt restructuring proposals, potentially pushing countries into challenging economic situations.

“Our government should rather possibly negotiate for a lengthy repayment period. The Chinese are not interested in negotiating debts down because they feel that once they do that, more countries will come forward for similar treatments,” he stated.

Prof. Peprah expressed skepticism about Ghana securing a substantial reduction, citing the Chinese reluctance to grant significant debt restructuring concessions in other instances. Drawing from examples, he highlighted that while Zambia received only a 1.0% haircut on the interest payment, Sri Lanka experienced a lengthening of the payment period.

He further asserted that the Finance Minister’s expectation of a 20-40% haircut on interest rates might be unrealistic in the Chinese context.

“It is not certain that the Chinese are going to give us a haircut of 20 to 40% that the Finance Minister is expecting. In Zambia, they gave them 1.0% haircut on the coupon, that is the interest payment and not on the principal. For Sri Lanka, they lengthened the payment process. Based on this, it will be difficult for Ghana to get what the Minister is expecting”, he stressed.

Providing alternative suggestions, Prof. Peprah recommended that Ghana negotiate for an extended repayment period, considering China’s reliance on interest payments for revenue. He emphasized that China, despite being classified as a developing nation, may be more amenable to spreading payments over an extended timeframe.

He cautioned that a delayed debt restructuring process could pose challenges to Ghana’s Balance of Payments, potentially impacting the disbursement of the $600 million second tranche of IMF funding.

Prof. Peprah further advised the government to study China’s past negotiations to inform its proposals and navigate the delicate process of debt restructuring.

Tags: Chinadebt negotiationsFinance expert urges Ghana to pursue lengthy repayment plan in China debt negotiationsIMFZambia
No Result
View All Result

Highlights

Nigeria: Forex Traders Say Chinese Traders Now Collecting Naira Instead of Dollars

Chinese Firm Faces $420 Million Zambia Mine Spill Damages Claims

60% of Africans Don’t Believe Democracy is Working in Their Interests – How Parliaments Can Fix The Problem

Banking Sector the Most Robust and Advanced Sector in Fight Against Money Laundering – Report

West Africa: Ghana Flagged as Target for Illicit Financial Flows in Latest National Risk Assessment

Central Bank Raises GH¢2.34bn in Short-Term Bill Sale at Nearly 25% Yield

Trending

Business

Chamber of Mines Pushes for Longer Stability Agreements to Safeguard Ghana’s Mining Competitiveness

September 3, 2025

Chamber of Mines Pushes for Longer Stability Agreements to Safeguard Ghana’s Mining Competitiveness The Ghana Chamber of...

Why Shorter Mining Leases Could Cost Ghana Big Projects and Jobs

September 2, 2025

Gold Price Hits Record High as Investors Seek Safety

September 2, 2025

Nigeria: Forex Traders Say Chinese Traders Now Collecting Naira Instead of Dollars

September 2, 2025

Chinese Firm Faces $420 Million Zambia Mine Spill Damages Claims

September 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.