If China does not agree to a debt relief package, the German Ambassador to Ghana, Daniel Krull, has issued a warning that the country’s request for a bailout from the International Monetary Fund (IMF) in the amount of $3 billion is in danger of not being approved.
The IMF is being asked to help the country stabilize its economy.
Speaking to the media, Mr. Krull stated that China has, up to this point, turned down attempts by officials from Ghana to engage them in conversation with the intention of getting them to commit to the establishment of a creditors’ committee in order to reach an agreement on a debt package.
On Friday, February 3, Ghana’s President Nana Addo Dankwa Akufo-Addo requested that Germany “encourage” China, which is an ad hoc member of the Paris Club, to support Ghana in its efforts to restructure its debt.
The President of Ghana made the announcement during a meeting with Christian Lindner, the visiting German Minister of Finance, which took place at the Jubilee House in Accra.
On Thursday, the Minister of Finance, Ken Ofori-Atta, stated that the government’s planned high-level conference with Chinese creditors regarding Ghana’s debt restructuring has been postponed until the end of March 2023. The meeting was scheduled to take place in the next few weeks.
His explanation is that this is because of the impending National People’s Congress of China, which is going to take place at the beginning of March.
Nevertheless, Mr. Krull has revealed that other creditors will only play their role and help if China, Ghana’s largest creditor, agrees to the debt reduction package. China is currently Ghana’s largest creditor.
“We are ready to live up to our responsibilities as one of Ghana’s biggest bilateral creditors, but we are only ready to show our support if certain conditions are met.””We are prepared to live up to our responsibility as one of the major bilateral creditors to Ghana.”
In the first place, it needs to be done in a manner that is internationally coordinated, and as a result, we have the shared framework established by the G20.
The G20 has come to an agreement on how to handle crises like this one, and we think it is very important that this plan be followed.
“The second requirement is that we are ready to take our part when others are willing to do that. In order for Ghana to receive assistance, all of Ghana’s key creditors need to be ready to do so. The massive problem in China is what needs to be addressed.
The People’s Republic of China is Ghana’s largest creditor, yet China has not shown any support for the establishment of a creditors’ committee. This would allow the country’s many creditors to get together and reach an agreement over an aid package for Ghana.
Mr. Krull also made a plea to members of parliament and other politicians in Ghana who have commercial ties with China, asking them to push their Chinese colleagues to agree to the aid package so that Ghana’s economy can be saved.
“The President and the Finance Ministers have appealed to Germany to support Ghana in convincing China to come to the table, and we are ready to do that.”
However, at the same time, I want to appeal to all Ghanaians who have strong ties to China and who are doing nice business with China to also engage them and convince them that it is time to sit down with all of the creditors and agree on a package.
The President and the Finance Ministers have appealed to Germany to support Ghana in convincing China to come to It is critical that we act quickly. If this deal is not reached, the IMF package will be in grave jeopardy.
