Ghana will contact China about possible debt forgiveness.



After a successful domestic debt swap program, Ghana's Finance Minister, Ken Ofori Atta, has revealed that negotiations with China about the country's debt are beginning.

Negotiations with China, according to Mr Ofori-Atta, are critical since they hold the majority of external bonds.

The Finance Minister stated that he will head a delegation to China to request debt forgiveness.

"The big elephant in the room is China, we will be visiting China by the end of the week to properly discuss how they enter into the envelope as rapidly as feasible. Therefore we are considering their assistance. China accounts for almost one-third of the $5.7 billion loan, therefore we must engage them."


The International Monetary Fund (IMF) said in January 2023 that it is working on a debt forgiveness scheme for Ghana and other nations in the midst of a worldwide economic recession risk this year.

Ethiopia, Zambia, Chad, Lebanon, Surinam, and Sri Lanka are the other nations.

The action, according to IMF Managing Director Madam Kristalina Georgieva, was made to avoid a "negative surprise" on the global economy, 25 percent of which was traded in emerging market areas.

"We're working hard to urge for debt settlement for these nations, and we've worked with the conventional creditors, the Paris Club, the non-traditional creditors, China, India, and Saudi Arabia. "Our appeal is really simple: We must act immediately," she stated in an interview.


ABDUL-WAHAB

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