Deputy Minister of Finance, Abena Osei-Asare expressed optimism about a fruitful discussion between Finance Minister Ken Ofori-Atta and China on debt restructuring negotiations.
Ken Ofori-Atta, who left Accra on Monday, March 20, with a government delegation, is expected to continue bilateral talks with China as well as seek financial assurances for Ghana’s IMF programme.
Abena Osei-Asare, speaking at the signing ceremony between the National Health Insurance Authority and the United States Agency for International Development (USAID) in Accra, called on Ghana’s bilateral partners, including USAID, to help the government establish the Ghana Financial Stability Fund as part of efforts to rebuild the economy.
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.
A Chinese delegation visited Ghana this month for preliminary debt talks, which were described as “cordial and fruitful” by the finance ministry.
Ghana suspended most of its external debt payments last year, effectively defaulting, and is still negotiating a resolution with its private international bondholders.
Ghana has already restructured its domestic debt and has requested that its bilateral debt be restructured through the Group of 20 major economies’ common framework platform. An official creditor committee for negotiations with sovereign creditors is still in the works.
