We need strong support from partners - Ofori-Atta to Chinese delegation
The Minister of Finance, Ken Ofori-Atta, has urged the country’s partners to extend a strong hand of support to help overcome current macroeconomic challenges.
Advertisement
The minister made the call at a farewell dinner for a Chinese delegation from the China Exim Bank that was in Accra to engage the government as part of moves to restructure about $1.9 billion debt owed to China.
China Exim Bank is the policy bank for China and holds over 40 per cent of Ghana’s debt to China.
The government is seeking, among other reliefs, an extension on the moratorium on debt servicing; an extension on the payment of maturities (principal and interest); and lower interest rates, the Finance Minister said.
Difficult at present
Describing the current economic environment as “difficult at present”, Mr Ofori-Atta rallied the gathering, saying: “What Ghana needs as we go through our current challenging economic and financial circumstances is strong support from our lasting partners, including China, to restore lasting growth and support the vulnerable.”
Mission
The delegation was in Accra for three days, ahead of Ghana’s upcoming Mission to China.
As part of the mission, the delegation met with Vice-President Mahamudu Bawumia, the Minister of Finance, and technical teams from the ministry.
Mr Ofori-Atta is expected to lead a high-level government mission to China during the last week of March this year.
The ministry described the discussions as “highly cordial and fruitful.”
According to the ministry, there had been successful engagements between the two governments, against the backdrop of high level technical discussions on the parameters of an effective debt treatment.
Mr Ofori-Atta reechoed his sense of optimism, stating: “I think we have made great strides already. And indeed, the visit of our Chinese colleagues assures me that we are both focused on a quick resolution to the challenges that confront us”.
The Finance Minister was upbeat about a mutually agreeable solution that would be exemplary of China’s leadership in dealing with bilateral debts.
Long-standing support
At the farewell dinner, the Chinese Ambassador to Ghana, Lu Kun, took his turn to highlight China’s long-standing support of Ghana’s economic development over the past 66 years.
He indicated that China was Ghana’s largest trading partner and the links between the two countries were “unforgettable”.
The ambassador referenced the strong links between the two nations as providing the impetus for the timely response of the Chinese government in speedily deploying the delegation to Accra.
Mr Kun thanked the members of the delegation and the Ministry of Finance, and expressed the optimism that the Chinese government would do its utmost to help Ghana.
Background
Ghana has started a debt restructuring process to lower its debt servicing in order to make the country’s debt position sustainable.
Last Month, the government completed a Domestic Debt Restructuring Programme, during which it secured 80 per cent voluntary tendering of old and high yield bonds in return for low yielding ones, with tenors extended.
On December 19, last year, the government suspended all debt service payments on Eurobonds; commercial term loans and on most of the country’s bilateral debt to allow for an orderly restructuring of the affected obligations.