Business News of 2014-07-29

G7 to consider waiving Ghana’s debt

The Group of 7 nations (G7) may consider cancelling the trillions of dollars owed them by Ghana and other African countries soon.

According to US President Obama, the G7 may consider waiving the debt owned them if African governments proved that monies given were put to good use by past leaders, and yet their countries are still wallowing in poverty.

‘Yes i think it is important for us to look at past practices, if loans have been given to African countries that worked to put it into productive enterprises by their leaders and they are long gone but these countries cannot still dig themselves out of poverty can we strategically find ways to provide some relief, that’s a legitimate discussion’. He said.

The G7 has been severely criticized over the years for failing to agree to cancel Africa’s debt. Critics say the G7 must cancel 100 percent of Africa’s debt, and switch to a system of grants for poor countries, rather than loans.

According to President Barack though G7 will consider the move, Africa must also realize that cancelling the debt may not necessarily be the solution to the continent’s economic crisis.

“But do not for one second think that, that’s the main reason to why we have not seen greater progress in many countries, because there is enough resources in many countries for them to do better, even if the debt are not being serviced,” he said.

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