IMF Bailout: Germany Warns Deal Could Be Jeopardised If China Rejects Ghana’s Debt Relief

• Ghana’s dream of securing a bailout package from the International Monetary Fund (IMF) is in danger
• This is according to the German Ambassador, Daniel Krull, who warns the deal might not go through if China doesn’t support Ghana’s debt restructuring programme
• As a condition to securing the $3 billion IMF deal, Ghana is expected to restructure its external debts, with China said to be the largest creditor

Germany has sounded the alarm bells on Ghana securing an economic bailout package from the International Monetary Fund (IMF).

According to the German Ambassador to Ghana, Daniel Krull, the deal might not go through if China doesn’t support the country’s debt restructuring programme.

China is Ghana's largest creditor

As a condition to securing the $3 billion IMF deal, Ghana is expected to restructure its external debts after doing the same with its local creditors.

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China is said to be the largest creditor, with Ghana owing the Asian country over $1.7 billion.

China rejects Ghana's debt restructuring programme

Speaking at a press briefing, the ambassador, Daniel Krull, said China had rejected attempts to buy into Ghana’s overtures.

“We are ready to take our part when others are ready, so all major creditors must be ready to help Ghana. The Big elephant in the room is China. China is the largest creditor to Ghana, and so far [China] is not supportive of setting up a creditors’ committee, where the creditors will sit down and agree on an aid package for Ghana.”

Daniel appealed to MPs and politicians with strong ties and business relations with China to encourage them to agree to the aid package to help rescue Ghana’s economy.

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As Ghana's economic conditions deteriorated, it turned to the Bretton-Woods Institution for respite.

The West African grappled with low forex reserves, skyrocketing prices of goods and services caused by hyperinflation, and cedi-dollar depreciation among others.

In a bid to shore up the country's reserves and boost the local currency, government officials are currently engaging the IMF for a bailout package.

Akufo-Addo urges Africa to stop ‘begging’

Earlier, YEN.com.gh reported that Nana Addo Dankwa Akufo-Addo, the president of Ghana had made a rallying call to African countries to stop begging for aid.

According to him, desisting from that practice will earn Africa global respect and change negative perceptions about the continent.

In his opening remarks at the US-Africa Leaders’ Summit in Washington DC, Akufo-Addo urged African countries to wean themselves off begging.

Source: YEN.com.gh