Following a successful domestic debt exchange scheme, the Finance Minister, Ken Ofori Atta, has announced that discussions on Ghana’s debt are currently being held with China.
Negotiations with China, according to Mr. Ofori-Atta, are crucial because they hold the majority of the external bonds.
The Finance Minister said he would head a mission to China to request debt forgiveness in an interview with Citi News yesterday in Accra.
“China is the major sticking point; we will be traveling there by the end of the week to actually talk about how they can enter the market as soon as possible. So, we are considering their help. We must work with China since it represents nearly a third of the $5.7 billion debt, he said.
The International Monetary Fund (IMF) said in January 2023 that it was working on a debt forgiveness program for Ghana and other nations in response to fears of a worldwide economic recession this year.
The other nations include Zambia, Chad, Lebanon, Surinam, and Sri Lanka, as well as Ethiopia and Zambia.
The action, according to IMF Managing Director Madam Kristalina Georgieva, was made to prevent any “negative surprise” on the global economy, of which 25% of trade was conducted in developing market regions.
“We’ve engaged with the conventional creditors, the Paris Club, the non-traditional creditors, China, India, and Saudi Arabia, and we’re working hard to urge for debt settlement for these countries. Our appeal is really straightforward: We must act immediately, she stated in an interview.