UPDATE 1-IMF says Ghana’s $13 bln Chinese loan ‘good’

(Adds background)

NAIROBI, Oct 25 (BestGrowthStock) – A $13 billion Chinese loan to
Ghana is good for the African country and does not contravene
any agreements with the International Monetary Fund (IMF), a
senior IMF adviser said on Monday.

Signed during a visit by President John Atta Mills to China,
the loan deal involves $3 billion from the Chinese Development
Bank to finance Ghana’s oil and gas infrastructure and
agricultural development.

A second deal for $9.87 billion was signed with Chinese Exim
Bank for road, railway and dam works.

“Investment from China is a big opportunity for sub-Saharan
Africa. It is a good thing,” Roger Nord, a senior adviser to the
IMF’s African department, told Reuters.

“Of course as with all such deals, they involve potentially
debts that need to be repaid so you need to make sure that this
debt is productive, and the investment will generate economic
return to repay the debt. The challenge now for Ghana and other
African countries is to use these resources wisely.”

He said the agreement did not go against any agreement the
IMF has with Ghana.

“The Ghanaian programme has particular objectives in terms
of getting both fiscal deficits and debt under control and
provided those benchmarks are met, I think Ghana will be on the
right track, but it is precisely there that the challenge lies.”
(Reporting by Helen Nyambura-Mwaura; Editing by Ruth
Pitchford)

UPDATE 1-IMF says Ghana’s $13 bln Chinese loan ‘good’