The African Development Bank Group (AfDB) has denied reports that it has placed Ghana under sanction.
The African Development Bank Group (AfDB) has denied reports that it has sanctioned Ghana over its failure to pay debts owed the bank.
Dr. Mahamudu Bawumia announced that the bank has listed Ghana as one of the countries under its sanctions.
According to him, “It would also interest you to know that Ghana has recently been sanctioned by the African Development Bank (AfDB) for non-payment of debt obligations due. Ghana Has Moved From HIPC To HIMIC - Bawumia Tells NDC
Dr Bawumia said the most significant reason Ghana resorted to the International Monetary Fund (IMF) for a bailout is because of unsustained borrowing and debt stock.
According to Dr Mahamadu Bawumia however, at 67% of GDP, Ghana’s debt stock has crossed the critical 60% of GDP level that developing countries with limited access to capital flows should worry about in terms of debt sustainability.
However according to AfDB in a statement, Ghana has fulfilled its obligations with the AFDB and is not on the list of countries that have been sanctioned by the bank.
“Our attention has been drawn to a press report that Ghana is under sanctions with the African Development Bank Group (AfDB). We wish to state that Ghana is current on all its obligations with the AfDB. Ghana is not on the list of countries under sanctions by the AfDB.”
The bank explained that Ghana was mistakenly put on the list last month but that anomaly was immediately corrected when detected.
“On 18 February 2015, due to an administrative oversight, Ghana was erroneously included in the list of countries under sanctions by the AfDB. However, the error was detected that same day and a corrected list was immediately issued in replacement,” the statement said.