Chinese officials have stated their willingness to assist Ghana with its present short-term liquidity challenges.
The Asian country has pledged to keep supporting Ghana’s medium and long-term development goals.
When Ghana’s Finance Minister, Ken Ofori-Atta, led a delegation to engage China about a $1.7 billion debt, Chinese Finance Minister Liu Kun offered the promise.
“China believes in promoting debt sustainability and sustainable development,” Liu Kun, said.
He added “we know that these are short-term challenges which we as responsible creditors remain committed to resolving. The long-standing and prosperous relationship between Ghana and China imposes on us, a responsibility to help”.
“Chinese authorities have confidence in Ghana’s economic management and its long-term economic viability.”
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The finance minister informed his Chinese colleague that Ghana’s Fund program needed significant budgetary reforms, debt restructuring, and financial guarantees.
He added that the country has just completed a difficult but essential Domestic Debt Exchange Programme, with an 85 percent participation rate, demonstrating the country’s willingness to take the required measures to realign its fiscal course.
Ghana’s Finance Minister said last week that discussions with China on Ghana’s debt had been positive and promising.
Mr Ofori-Atta travelled to Beijing on Wednesday to meet Chinese officials to discuss a proposed restructuring of Ghana’s debt, according to a source with knowledge of the talks.
China also stated on Thursday that it would want to improve interactions with Ghana in order to find a proper settlement to Ghana’s debt issue, according to its foreign ministry.
Ghana, which is experiencing its worst economic crisis in a century, got a staff-level agreement with the International Monetary Fund (IMF) in December for a $3 billion loan, however the IMF’s board requires lenders to offer financing assurances before signing off on the program.
With around $1.7 billion in debt, China is Ghana’s largest bilateral creditor.
The government’s current priority is to secure IMF board approval, with the fine details of debt treatment operations to follow later, the source added.
SOURCE: CITINEWS
