Canada cancels Ghana’s $18.2 million debt

Canada yesterday announced the cancellation of 18.2 million Canadian dollars owed her by Ghana as part of a package of goodwill to the government.

This is part of a moratorium on debt repayments owed by 17 Heavily Indebted Poor Countries (HIPC) which takes effect this month.

This was disclosed by Canada’s Secretary of State for Latin America and Africa, Mr David Kilgour, when he called on the President, Mr John Agyekum Kufuor, at the State House in Accra.

Canada is currently owed about $1.1 billion by the 17 countries.

Canada has, according to Mr Kilgour, urged other creditors who are serious about improving the lives of the world’s poor to follow Canada’s lead in applying a debt moratorium.

Mr Kilgour also delivered a congratulatory message from Prime Minister Jean Chretien to President Kufuor.

The message, among other things, said: “The Government of Canada will continue to work actively with the Government of the Republic of Ghana and the new administration to capitalise on the momentum achieved in our bilateral relationship to date, as well as to promote our collaborative activities in multilateral fora.”

The message also noted: “This is a historic period for Ghana and the country stands as a model to uphold on the rest of the continent”.

Mr Kilgour also presented Mr Kufuor with a letter of congratulation from the Governor-General of Canada, Adrienne Clarkson.

It expressed the Governor-General’s warmest congratulations and noted that the large number of Canadians of Ghanaian origin have enriched the country and heightened Canada’s understanding of Ghana.