Sunday, April 12, 2020

CHINA MUST EASE AFRICAN DEBT BURDEN – GHANA’S FINANCE MINISTER


Ghana's Finance Minister, Ken Ofori-Atta


Ghana's Finance Minister, Ken Ofori-Atta


Ghana's finance minister said China should step up debt relief for African countries in economic distress due to the coronavirus pandemic. This was reported by Reuters news agency, citing a statement by the Minister of Finance of Ghana.



“ I believe that China should act more actively, ” Ken Ofori-Atta said during a conversation with Masoud Ahmed, head of the Washington Center for Global Development.

Ofori-Atta is currently chairing the Africa Development Committee, a ministerial forum whose members are consulting with the World Bank and the International Monetary Fund on Development.

“The African debt to China is about 145 billion US dollars, this year it will be necessary to pay more than 8 billion ... This must be taken into account, ” he added.

According to reporters, African governments have requested $ 100 billion in assistance to combat the pandemic, as well as a moratorium on external debt and the complete cancellation of some debts. 

Mr. Ofori-Atta added that African countries intend to increase their special drawing rights and foreign exchange reserves, managed by the IMF, to protect against defaults on commercial debts.

Africa accounts for only a small proportion of coronavirus infections globally, but the continent's health systems are already under serious pressure, with continent economies expected to decline, putting at least 20 million jobs at risk.

On Tuesday, April 7, China said it recognized that developing countries were facing more serious problems during the fight against the pandemic, but did not mention any specific debt relief measures that were planned to be implemented.

At a media briefing, the representative of the Chinese Foreign Ministry, Zhao Lijian, said that China would discuss bilateral requests from the countries concerned.

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