According to honorable Isaac Adongo, the Deputy Ranking Member of Parliament’s Finance Committee, Ghana is unlikely to receive debt relief from China due to China’s current economic and geopolitical position.
In an interview with the press, Adongo explained that China’s political and economic ideology does not align with the Paris Club’s conditions, making debt forgiveness complicated.
Additionally, Adongo noted that Ghana’s timing in seeking help from China is unfavorable because other African countries are also seeking assistance. Whatever China agrees with Ghana must also be fair to other African countries seeking aid.
Despite Ghana’s efforts to reduce its debt stock through a domestic debt exchange program, debt sustainability has not been achieved. Adongo expressed disappointment with China’s reluctance to forgive debts, stating that they do not believe a sovereign country can be poor, only broke, and they expect countries to use their assets and other means to collect their money.
Ghana, which is facing an economic crisis, wants to restructure over $1.5 billion of the debt it owes China, and it recently secured a staff-level agreement with the IMF for a $4 billion loan, but the money’s approval is contingent on it restructuring its debt.