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Japan is not against HIPC...Ambassador

Sun, 29 Apr 2001 Source: GNA

Japanese Ambassador Hiromu Nitta on Saturday repeated that his country is not against Ghana opting for the Highly Indebted Poor Countries (HIPC) Initiative.

He said his country would continue to support Ghana with grants and aid as part of its development assistance programme.

However, the Japan government is yet to confirm its support for certain on-going projects, especially the Malam-amoransa stretch on the Takoradi road in the Central Region and a stretch of road on the Achimota-Kumasi road.

Mr Nitta said this, when he hosted a cocktail for the media to explain relations between Ghana and Japan, especially on issues regarding the HIPC initiative.

He said Japan is the biggest contributor among the world's industrialised countries (the G8) to commit 3.8 billion dollars as relief for 22 countries under the Initiative.

The G8 comprise Japan, Britain, Canada, France, Germany, Italy, United States and Russia.

Mr Nitta said Japan had been the largest bilateral donor to Ghana for sometime.

Under its official development assistance (ODA), Japan gave Ghana 8.95 billion-yen (19 million dollars) in 1999 and 5.57 billion yen (15.5 million dollars) in 2000.

Mr Nitta said: " Japan is not at all against any country to apply for the debt relief under the HIPC initiative.

"Indeed, as of December 2000, the total amount of relief to be provided by Japan for 22 countries will be 3.8 billion dollars, making Japan the biggest contributor."

The Ambassador said his country's ODA in year 2000 was 13.06 billion dollars, making Japan the world's biggest donor for 10 years since 1991.

HIPC is a relief package designed by International Monetary Fund (IMF) to assist distressed countries that cannot pay debts owed to donor countries, the World Bank and the Fund.

Under the HIPC initiative, member countries are made to accept certain conditionalities including the reduction of poverty among the citizenry.

The New Patriotic Party government opted for the initiative and this has brought it under criticism from the public and certain organisations that complained about the absence of dialogue on the decision.

The Japan government, ranked as a top donor to Ghana, has also been quoted in certain quarters to be against the initiative.

Japan contributes about 25 per cent to the Development Assistance Committee (DAC) run by 22 member countries.

Mr Motoyoshi Noro, Deputy Head of Mission, said Japan would not grant loans to any HIPC country because they would be pilling up their debts.

He said Ghana must bargain for the best terms under HIPC, especially, with regards to the privatisation of the Ghana Commercial Bank.

However, Japan advises war-thorn countries like Liberia and Sierra Leone to opt for the initiative to revive their economy.

Source: GNA