Kuffuor defends declaring nation HIPC in 2001

Ex-President John Kuffuor

Ex-President John Kuffuor

Former President Agyekum Kufuor has defended declaring the nation Highly Indebted Poor Country (HIPC) in 2001.

“Declaring Ghana as a Highly Indebted Poor Country (HIPC) in 2001 was significant in putting the economy back on its tracks,” he stressed.

According to former President Kufuor, the decision was strategic because the economy he inherited was so bad all donor partners had abandoned Ghana.

“I had come to government with the economy of the state flat on its face down, weighted down with debts, we were even described as not credit worthy and no creditors will continue to give us credit lines to run the bus of the state.

“Declaring a HIPC status gave the government some liquidity to operate because most of the interests had accumulated were forgiven and helped to restore the macro-economic stability of the state.

“Albeit accepting that was not a popular move at the time, my administration had only four years to prove it could govern and being adamant the inherited economy was in shambles would have left it worse off.

“I acknowledged that not even cabinet could agree the government should declare HIPC but it helped and the world of credit opened up to us since the administration did not need to find money to pay interest on the erstwhile government’s debts we had enough money to pump into other sectors of the economy.

“We sprayed all cocoa farms for free and also gave fertiliser to the farmers at subsidised rates, all these were achieved of HIPC since that single decision restored the confidence of donors because when you tell the truth about yourself it brings confidence of others,” former President Kufuor noted. –myjoyonline.com


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