Afreximbank Rejects Fitch’s Debt Concerns, Cites Strong Finances

The African Export-Import Bank (Afreximbank) has issued a statement addressing Fitch Ratings’ recent report, reaffirming its strong financial position and adherence to international accounting standards. 

While acknowledging Fitch’s recognition of its “high collateralization, strong capitalization, and excellent liquidity,” the Bank clarified key differences in its approach to non-performing loans (NPLs) and debt restructuring.

Afreximbank emphasized that its financial reporting strictly follows International Financial Reporting Standards (IFRS 9), with its 2024 audited statements providing full transparency. 

The Bank noted that Fitch’s NPL assessment differs due to Afreximbank’s use of forward-looking risk analysis, a practice aligned with its treaty-based governance framework.

Fitch’s report highlighted the Bank’s “strong equity-to-assets ratio,” “low concentration risk,” and “high-quality treasury assets” as pillars of its financial resilience. 

However, the assigned ‘negative outlook’ stemmed from concerns over potential sovereign debt restructurings—a scenario Afreximbank firmly rejected.

“Our establishment treaty, ratified by 53 member states, prohibits participation in sovereign debt restructuring,” the Bank stated. “Any such action would violate international law and our mandate to foster trade-led growth in Africa.”

Afreximbank reiterated its commitment to macroeconomic stability and risk-mitigated lending, underscoring its role in supporting member nations through economic challenges. 

The Bank’s robust governance and capital buffers position it to continue driving Africa’s development agenda without compromising its financial integrity.