China Refuses Ghana’s Plea for Debt Forgiveness Despite IMF Agreement: Will This Jeopardize Ghana’s Economic Future?

Spread the love

According to reports, the Chinese government has declined Ghana’s request for debt forgiveness in bilateral debt talks. President Akufo-Addo had previously urged the German government to encourage China to support Ghana’s debt restructuring efforts, but the Chinese government has asked Ghana to pay back all its debts. Speaking on his show, Maakye, Captain Smart confirmed the news on Thursday, February 23, 2023.

In January 2023, during a meeting with German Finance Minister Christian Lindner, President Akufo-Addo stressed the importance of concluding negotiations with the International Monetary Fund (IMF) by mid-March. He also emphasized the need for other creditors to support Ghana’s efforts to restructure its external and domestic debts. The President called for the swift establishment of a creditors committee to enable negotiations to proceed quickly.

While President Akufo-Addo acknowledged the German government’s support, he also requested that they encourage China to participate in debt relief efforts. However, the Chinese government declined to participate, insisting that Ghana must pay back all its debts.

Last December, the IMF reached a Staff-Level Agreement with Ghana on a $3 billion Extended Credit Facility, subject to Ghana comprehensively restructuring its domestic and external debts. With the Chinese government declining to participate in debt relief efforts, Ghana may face significant challenges in fulfilling the requirements of the IMF agreement.


Leave a Reply

Your email address will not be published. Required fields are marked *