The Paris Club of Creditor Nations has cancelled 90 million dollars of Ghana's debt, following negotiations for relief under the Highly Indebted Poor Country (HIPC) initiative.
In addition, Ghana would save 160 million dollars on debt servicing for this year alone and would also save more if it were able to sign bilateral agreements with the G8 members, who has promised to grant a 100 per cent relief when Ghana reaches the completion point of the initiative.
Mr Yaw Osafo-Maafo, Minister of Finance announced this to newsmen at the Kotoka International Airport on Sunday when he returned from Paris, France, where he met members of the Paris Club to negotiate on debt relief for the country.
He said Ghana's proposal received favourable responses from the over 80 representatives from 14 countries as well as the World Bank, the International Monetary Fund and the Organisation for Economic Development and Co-operation, who were there as observers.
Mr Osafo-Maafo said the stock of debt owed to the Paris Club creditors as at 1 February 2000 stood at 1.8 billion dollars, out of which 1.5 billion is pre cut-off dates claims. He explained that the Pre cut off were debts, which were due at the time Ghana reached the decision point, adding that it was that amount that was negotiated on.
Mr Osafo-Maafo said generally, there were two conditions under HIPC relief, explaining that the first was when any country reached the decision point, it was given the Naples terms, which is a relief of 57 per cent of debt. The minister said the second stage was the Cologne terms, which was 90 per cent debt relief, when the country reached completion point.
He said Ghana negotiated successfully on the Cologne terms, although it was yet to reach the completion point. Mr Osafo-Maafo mentioned that Ghana was supported by the United Kingdom in her negotiations and "we are very satisfied with the outcome of this concluding negotiations with the Paris Club."
He added that: "We are to sign bilateral agreements as a condition with all the countries we owe by 1 November 2002 to reflect this agreement, otherwise we shall get only 57 per cent debt relief even though we have successfully negotiated for 90 per cent.
The minister said the Ghana would be expected to write to the Paris Club that she had signed all the agreement with the countries she owed. It had already signed agreements with France, South Africa, Germany, and the United States but is yet to sign with Canada, Austria, Belgium, Italy, Japan, Netherlands, Norway, Spain and the United Kingdom. The total stock of Ghana's debt as at December 2000 was six billion dollars. The Paris Club included both bilateral and multilateral countries and agencies.
The Paris Club of Creditor Nations has cancelled 90 million dollars of Ghana's debt, following negotiations for relief under the Highly Indebted Poor Country (HIPC) initiative.
In addition, Ghana would save 160 million dollars on debt servicing for this year alone and would also save more if it were able to sign bilateral agreements with the G8 members, who has promised to grant a 100 per cent relief when Ghana reaches the completion point of the initiative.
Mr Yaw Osafo-Maafo, Minister of Finance announced this to newsmen at the Kotoka International Airport on Sunday when he returned from Paris, France, where he met members of the Paris Club to negotiate on debt relief for the country.
He said Ghana's proposal received favourable responses from the over 80 representatives from 14 countries as well as the World Bank, the International Monetary Fund and the Organisation for Economic Development and Co-operation, who were there as observers.
Mr Osafo-Maafo said the stock of debt owed to the Paris Club creditors as at 1 February 2000 stood at 1.8 billion dollars, out of which 1.5 billion is pre cut-off dates claims. He explained that the Pre cut off were debts, which were due at the time Ghana reached the decision point, adding that it was that amount that was negotiated on.
Mr Osafo-Maafo said generally, there were two conditions under HIPC relief, explaining that the first was when any country reached the decision point, it was given the Naples terms, which is a relief of 57 per cent of debt. The minister said the second stage was the Cologne terms, which was 90 per cent debt relief, when the country reached completion point.
He said Ghana negotiated successfully on the Cologne terms, although it was yet to reach the completion point. Mr Osafo-Maafo mentioned that Ghana was supported by the United Kingdom in her negotiations and "we are very satisfied with the outcome of this concluding negotiations with the Paris Club."
He added that: "We are to sign bilateral agreements as a condition with all the countries we owe by 1 November 2002 to reflect this agreement, otherwise we shall get only 57 per cent debt relief even though we have successfully negotiated for 90 per cent.
The minister said the Ghana would be expected to write to the Paris Club that she had signed all the agreement with the countries she owed. It had already signed agreements with France, South Africa, Germany, and the United States but is yet to sign with Canada, Austria, Belgium, Italy, Japan, Netherlands, Norway, Spain and the United Kingdom. The total stock of Ghana's debt as at December 2000 was six billion dollars. The Paris Club included both bilateral and multilateral countries and agencies.
