Ghana and France have agreed to an €87.7 million debt reduction plan through the Official Credit Committee (OCC) framework.
The Minister of Finance, Dr. Cassiel Ato Baah Forson, signed the agreement on behalf of Ghana on Friday, while Mr. William Ross, Co-Chair, OCC, signed on behalf of France.
After two years of discussions, France became the first bilateral creditor to sign the debt agreement, which offers a 100% debt service reduction on the interest rate and an extension of the country’s debt’s maturity.
Following the deal’s signing, Dr. Forson gave a speech in which he praised the Paris Club, OCC, legal counsel, and financial advisors for their cooperation in making the bilateral agreement a reality.
According to him, the nation was exhibiting indications of economic recovery, as evidenced by the improvement in external reserves, the fiscal economy, and the drop in the rate of inflation.
“Inflation that was once at 54.1 percent has now come down to 13.7 percent. We are seeing growth bounded to about a five-year high. We are seeing particularly reserves of the external position improving to about four months of import cover, and the primary surplus is at 1.1 percent of Gross Domestic Product (GDP),” Dr. Forson said.
He promised the government’s commitment to maintaining economic stability, making sufficient investments in the country’s agriculture, infrastructure, health, and education sectors, and strengthening Ghana’s advantageous partnership with France.
In his remarks, Mr. Ross thanked the Ministry of Finance, under the leadership of Dr. Forson, for their hard work in securing the signing of the debt agreement.
He said that because of the complexity of Ghana’s debt, the debt agreement between France and Ghana was signed after a number of professional and effective interactions with various stakeholders and the development of trust among official bilateral and international creditors.
“If you look at what we have done for Ghana, it is shorter than what we did for Zambia, but we have continued to improve in the case of Ethiopia… you have been very impressive because you have many people and institutions to engage with,” Mr. Ross stated.
The signing of the debt agreement, according to Mr. Jules Armand Aniambossou, the French ambassador to Ghana, is a reflection of the two nations’ long and challenging history and how they have managed it over the years.
“When I came to this country more than two years ago, the country was facing some difficulties. But when your friend or your family is facing difficulties, you have to showcase that you will not just say, I am sorry, but take some key actions,” he reiterated.
Source: newsthemegh.com