US to intervene to seek debt forgiveness for Ghana

The US will intervene on Ghana’s behalf with the Paris Club as the country seeks debt forgiveness as part of the International Monetary Fund’s balance of payment support.

This was made known by the US Vice President, Kamala Harris at a joint Press Conference with President Akufo-Addo this afternoon.

According to Ms Harris, the US will help Ghana with all the support it needs to ensure that it scales through its current economic crisis.

“We welcome Ghana’s commitment to reform its economy for sustainable and inclusive growth. We support Ghana’s engagement with the IMF, and we will continue to push all bilateral creditors to provide meaningful debt reduction for countries that need it.

“It is critical to do so to build long-term economic growth and prosperity and to increase US investments. Our partnership is already strong, and I believe that today we have strengthened it.”

Meanwhile Kamala Harris has entreated Ghana’s foreign creditors to help the country meet its debt servicing obligation.

Madam Harris believes this will enable Ghana successfully negotiate the bailout it is seeking from the International Monetary Fund (IMF).

Ghana’s economy is currently in turmoil as the government knocks on the IMF’s doors for a financial facility amid a painful domestic debt restructuring programme.

Finance Minister, Ken Ofori-Atta also just returned from a trip to China to negotiate external debt forgiveness to enable it to secure the expected $3 billion cushion from the Fund.

But speaking at the Jubilee House in Accra, Kamala Harris expressed support for the “engagement with the IMF.”

She insisted that the Biden administration “will continue to push for all bilateral creditors to provide meaningful debt reduction for countries that needed including Ghana.”

“We must work together as an international community to ease the debt burden that is facing far too many countries,” she added on Monday.

She also announced the US government is committing $100 million to combat terrorism in some coastal West African countries.

These include Ghana, Guinea, Cote D’Ivoire, Benin and Togo. This, she said, forms part of President Joe Biden’s strategy to prevent violent extremism and promote stability.

Madam Harris is currently embarking on a one-week tour which will see her visit Ghana and two other African countries – Tanzania and Zambia.