US to intervene and seek debt forgiveness for Ghana

US Vice President Kamala Harris announces intervention to help Ghana's economic reform

US Vice President Kamala Harris
US Vice President Kamala Harris and President of Ghana Akufo Addo

The United States government has pledged to intervene on behalf of Ghana to seek debt forgiveness from the Paris Club. This announcement was made by the US Vice President, Kamala Harris during a joint press conference with President Akufo-Addo. The move is part of the International Monetary Fund’s (IMF) balance of payment support for Ghana, which is currently undergoing a painful domestic debt restructuring program.

Ms. Harris expressed the US government’s commitment to supporting Ghana’s efforts to reform its economy for sustainable and inclusive growth. She stated that the US would provide all the necessary support to help Ghana navigate through its current economic crisis. The US Vice President also urged Ghana’s foreign creditors to assist the country in meeting its debt servicing obligations.

The US government’s intervention is aimed at ensuring that Ghana successfully negotiates the bailout it is seeking from the IMF. Ghana’s Finance Minister, Ken Ofori-Atta, recently returned from a trip to China to negotiate external debt forgiveness to enable the country to secure the expected $3 billion cushion from the Fund.

Ms. Harris reiterated the Biden administration’s commitment to pushing for all bilateral creditors to provide meaningful debt reduction for countries that needed it, including Ghana. She also stressed the need for the international community to work together to ease the debt burden that many countries are facing.

In addition to the debt forgiveness, the US government has also announced a $100 million commitment to combat terrorism in some coastal West African countries, including Ghana, Guinea, Cote D’Ivoire, Benin, and Togo. This forms part of President Joe Biden’s strategy to prevent violent extremism and promote stability.

Ms. Harris is currently on a one-week tour of Africa, which includes visits to Ghana, Tanzania, and Zambia. Her visit is expected to strengthen ties between the US and these African countries, promote economic growth, and enhance security cooperation.

In conclusion, the US government’s intervention to seek debt forgiveness for Ghana is a significant boost to the country’s efforts to reform its economy and build sustainable growth. The move will help alleviate the debt burden that Ghana is currently facing and pave the way for the country to secure the much-needed bailout from the IMF. It is hoped that this will enhance Ghana’s economic prospects and promote stability in the West African region.

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