The German Ambassador to Ghana, Daniel Krull, says China could threaten Ghana’s high expectations in a $3 billion bailout being sought from the International Monetary Fund(IMF).

He fears China’s unwillingness to engage in possible debt relief will frustrate authorities’ plan to lock in an agreement on a debt package.

Addressing the media, Mr. Krull stressed that other creditors will only play their part and help Ghana’s situation if the biggest creditor[China] agrees to the debt relief package.

“We are prepared to live up to our responsibility as one of the major bilateral creditors to Ghana, but we are only ready to implement our solidarity only if certain criteria are met. In this first place, it has to be done in an internationally coordinated fashion, and therefore we have the G20 common framework. The G20 has agreed on how to deal with these kinds of crises, and we feel that it is important that this framework is respected.

“The second condition is that we are ready to take our part when others are ready to do that 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 of a creditors’ committee, where the creditors will sit down and agree on an aid package for Ghana.

“The President and the Finance Ministers have appealed to Germany to support Ghana in convincing China to come to the table, and we are ready to do that but at the same time, I want to appeal to all Ghanaians who have strong ties to China, who are doing nice business with China to also engage them and convince them that it is time to sit down with all the creditors and agree on a package. Time is of the essence. Without this agreement, the IMF package is in severe danger.”

Special Talks with China

Ghana has rescheduled its meeting with Chinese creditors over debt restructuring to the third week of March.

Finance Minister, Ken Ofori-Atta, was billed to meet representatives of the Chinese government and its quasi-agencies in Beijing from February 26 on how the Asian giant could support the West African nation with softer debt repayment terms.

A source, however, said that meeting has been shifted forward to allow the Chinese government to concentrate on their annual National People’s Congress (NPC), which opens on March 5 in Beijing.

Source: Ghana/ fm