Support Ghana’s restructuring exercise – German Finance Minister to international creditors

 The German Finance Minister, Christian Lindner has called on Gha­na’s International Creditors to sup­port the country’s debt restructur­ing exercise.

That, he said, had become neces­sary to put the country on the path of debt sustainability.

Mr Lindner made the call during bilateral discussions with the Min­ister of Finance, Ken Ofori-Atta, on the International Monetary Fund engagement and structural reforms in the energy sector in Accra yesterday.

Mr Lindner said Germany which was the second largest bilateral partner and creditor of Ghana, would stand by Ghana in it’s discussions with international creditors for debt forgiveness.

He entreated China which is an important bilateral partner of Gha­na to come under the International Creditor Committee Framework under the Paris Club for debt for­giveness to Ghana.

Ghana is currently seeking to re­structure its total public debt which currently stands at GH¢575 billion.

Mr Lindner said Ghana must look at possible way to restructure its debt.

“Debt restructuring should be fair and burden sharing must be equal and China must come under International Creditor Committee Framework for debt forgiveness to Ghana,” Mr Lindner said.

Aside debt forgiveness, fiscal discipline, debt management and macroeconomic stability would bring the country back on the path of debt sustainability.

The German Finance Minister said the Russian Ukraine war had had devastating impact on the global and Ghanaian economy.

“Ghana must put quickly initiate measures to restore macroeconom­ic stability in order not derail the macroeconomic gains the country has achieved over the years,” he said.

Mr Lindner pledged that Ger­many would continue to support Ghana.

He said the country abounded in so many economic opportunities.

“We have keen interest in the economic progress and economic stability of the country,” Mr Lind­ner stated.

He commended government for the establishment of the Develop­ment Bank Ghana to support the private sector.

Asked whether Germany was ready to support the Financial Stability Fund, Mr Lindner said Germany was waiting for Europe and other multilateral organisations to make a move before Germany did so.

The Finance Minister, Mr Ken Ofori-Atta said the Ghanaian and global economies were going through difficult times and he was hopeful Ghana would overcome it current economic challenges.

He said the country was in the middle of the IMF programme and that would require the support of Germany.

He expressed the hope that Germany would support Ghana in its debt exchange programme particularly the establishment of the International Creditor Com­mittee under the Paris Club and also support the Ghana for the establishment of the Financial Stability Fund as part of the debt restructuring programme to sup­port the banking industry to lend to the private.

Mr Ofori-Atta said Ghana’s debt had become unsustainable, hence the need to pursue an IMF programme and subsequent debt restructuring programme.

He lauded Germany for its con­tinuous support to Ghana, saying Germany had been a great partner of Ghana over the years.

Mr Ofori-Atta stressed the need for the global economic framework to be restructured to build resil­ience ensure economy stability.


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