March 3, 2023

Debts Restructuring: Finance Ministry Updates Ghana On China Engagement

The Ministry of Finance has ended an engagement with a delegation from China over the government’s debt restructuring programme.

The three-day engagement ended on March 1, 2023.

Ghana owes China $1.9 billion and according to a report by Citinews, Ghana is seeking debt cancellation.

The delegation from China came to Accra for the engagement at the request of the government.

“A Chinese Delegation has just ended a 3-Day mission to engage the Government of Ghana, following a request for the restructuring of Ghana’s $1.9 billion debt owed to China”, a statement from the Ministry said.

“Scheduled meetings are progressing well, and discussions have so far been highly cordial and fruitful”, the statement added.

Their visit to the country precedes an upcoming Mission to China in line with ongoing negotiations for a sovereign debt treatment.

Finance Minister Ken Ofori-Atta was set to leave the country at the end of February to meet Chinese creditors over the debt restructuring programme, however, it was postponed to late March 2023 due to China’s National People’s Congress scheduled for early March.

Last week, German ambassador to Ghana, H.E. Daniel Krull said Ghana risk losing out on the IMF bailout should China refuse the planned debt restructuring.

He revealed that China was not supportive of setting up a creditors’ committee where the creditors will sit down and agree on an aid package for Ghana.

He is cited as saying “The President and the Finance Ministers have appealed to Germany to support Ghana in convincing China to come to the table, and we are ready to do that but at the same time, I want to appeal to all Ghanaians who have strong ties to China, who are doing nice business with China to also engage them and convince them that it is time to sit down with all the creditors and agree on a package. Time is of the essence. Without this agreement, the IMF package is in severe danger.”



Source: Fuseini

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