During discussions led by Ghana’s Finance Minister, Ken Ofori-Atta, with a delegation from China over a $1.7 billion Debt, the Chinese Finance Minister Liu Kun assured that Chinese authorities are willing to help Ghana with its current short-term liquidity challenges and will continue to support the country’s medium and long-term developmental aspirations. Liu Kun emphasized China’s commitment to promoting debt sustainability and sustainable development.

The Chinese Finance Minister added that, as responsible creditors, they are committed to resolving the short-term challenges faced by Ghana. The long-standing and prosperous relationship between the two countries imposes a responsibility on China to provide assistance.

Chinese authorities have confidence in Ghana’s economic management and its long-term economic viability. During the meeting, Ghana’s Finance Minister informed his Chinese counterpart that the country’s Fund programme required steep fiscal adjustments, debt restructuring, and financing assurances.

He also mentioned that Ghana had recently undergone a painful but necessary Domestic Debt Exchange Programme with a participation rate of 85%, which demonstrated the country’s readiness to take the necessary action to readjust its fiscal path. Last week, Ghana’s Finance Minister reported that discussions with China regarding Ghana’s debt had been positive and encouraging.

According to a source with knowledge of the talks, Mr. Ofori-Atta traveled to Beijing on Wednesday to discuss a proposed restructuring of Ghana’s debt with Chinese officials.

On Thursday, China’s foreign ministry stated that it would like to improve communication with Ghana to seek a proper resolution to Ghana’s debt issue.

Ghana has been experiencing its worst economic crisis in a generation, and in December, it secured a staff-level agreement with the International Monetary Fund (IMF) for a $3 billion loan. However, requesting lenders to provide financing assurances is a condition for the IMF’s board to approve the program.

China is Ghana’s largest bilateral creditor, with approximately $1.7 billion in debt.

The government’s current priority is to obtain IMF board approval, and the specifics of debt treatment operations will be addressed later, the source added.

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