Chinese authorities have stated their willingness to assist Ghana with its current short-term liquidity problems.
The Asian country also promised to continue supporting Ghana’s medium and long-term development goals.
When Ghana’s Finance Minister, Ken Ofori-Atta, led a delegation to engage China over a $1.7 billion debt, Chinese Finance Minister Liu Kun gave the assurance.
“China believes in debt sustainability and sustainable development,” said Liu Kun.
“We know that these are short-term challenges that we as responsible creditors are committed to resolving,” he added. The long-standing and prosperous relationship between Ghana and China places a responsibility on us to assist.”
“Chinese officials have faith in Ghana’s economic management and long-term economic viability.”
The finance minister informed his Chinese counterpart that Ghana’s Fund programme necessitated significant fiscal adjustments, debt restructuring, and financing guarantees.
He mentioned that the country had just completed a painful but necessary Domestic Debt Exchange Programme, with an 85 percent participation rate, demonstrating the country’s willingness to take the necessary action to read just its fiscal path.
Ghana’s Finance Minister revealed last week that discussions with China about Ghana’s debt have been positive and encouraging.
According to a source familiar with the talks, Mr. Ofori-Atta travelled to Beijing on Wednesday to meet with Chinese officials about a proposed debt restructuring for Ghana.
China also revealed on Thursday that it would like to improve communications with Ghana in order to find a proper resolution to Ghana’s debt issue, according to its foreign ministry.
Ghana, which is experiencing its worst economic crisis in a generation, secured a staff-level agreement with the International Monetary Fund (IMF) in December for a $3 billion loan, though the IMF’s board requires lenders to provide financing assurances before signing off on the programme.
With approximately $1.7 billion in debt, China is Ghana’s largest bilateral creditor.
The government’s current priority is to obtain IMF board approval, with the fine details of debt treatment operations coming later, according to the source.
