Ghana engages China for possible debt cancellation

The Finance Minister, Ken Ofori Atta, has disclosed that talks are underway with China over Ghana’s debt following a successful domestic debt exchange programme.

Mr Ofori-Atta said negotiations with China are important because they hold the majority of the external bonds.

Speaking with Citi News, the Finance Minister said he will lead a delegation to China to plead for debt cancellation.

“The big elephant in the room is China, we will be visiting China by the end of the week to really discuss how they come into the envelope as quickly as possible. So we are looking at that support from them. China represents about a third of the $5.7 billion loan and so it is important that we engage them.”

In January 2023, the International Monetary Fund (IMF) says it is working towards a debt cancellation programme for Ghana and other countries amid a global economic recession scare this year.

The other countries are Ethiopia, Zambia, Chad, Lebanon, Surinam, and Sri Lanka.

The move, Madam Kristalina Georgieva, the IMF Managing Director, said was to avert any “bad surprise” on the global economy, out of which 25 percent had its trade in emerging markets territories.

“We’re working hard to press for debt resolution for these countries, and we’ve engaged with the traditional creditors, the Paris Club, the non-traditional creditors, China, India, and Saudi Arabia. Our call is very simple: Urgently we have to act,” she said in an interview.

Source: Citi Business News