China writes off part of Ghana's debt
Accra (Greater Accra) 18 June 2002 - The Republic of China on Monday wrote off Ghana's debt of 100.8 million Yuan, an equivalent of 53.5 million dollars owed to that country since 1961.
The amount is worth 85 per cent of Ghana's total debt to China and forms the single largest amount of debt written off so far this year, Finance Minister Yaw Osafo-Maafo, said when he signed an agreement to this effect in Accra.
Mr Yang Wenchang, China's Vice Minister of Foreign Affairs, signed for his country. Mr Wenchang, who is also in charge of Western Asian and African Affairs and Human Resources, is on a three-day working visit to Ghana.
Speaking at the ceremony, Mr Osafo-Maafo said China gave Ghana interest free loans of seven million pounds in 1961 and eight million pounds in 1964 under an agreement on economic and technical co-operation. The two loans equalled 103.3 million Yuan in Chinese currency in those days when Ghana used the pound.
The Finance Minister said 102.8 million Yuan of the amount was utilised by Ghana while 1.9 million Yuan was repaid.This left a total of 100.8 million Yuan, an equivalent of 53.5 million dollars when the part payment was made in 1982.
Mr Osafo-Maafo said the amount written off did not fall under the Highly Indebted Poor Countries' (HIPC) initiative. He thanked the Chinese government and said Ghana would ensure that the assistance helped the country in its efforts to reduce poverty and create wealth.
Mr Wenchang said his country decided two years ago to make an effort to relieve and reduce debts owed her by some countries. As a result about 30 African countries would receive an average of 60 per cent debt relief. He said Ghana was one of the countries to receive the largest debt cancellation so far because "China values the development of relations between the two countries."
The Foreign Minister explained that China believed the gesture would encourage the international community to resolve and find an early solution to the debt problems of Africa towards a sound economic development of the region. Mr Wenchang said China was resolved to take the lead in this direction to make an example for the promotion of South-South co-operation and also to help to develop Africa's economy.
He urged the International development Institutions to redouble their efforts towards debt relief programmes and expressed the hope that by so doing, they would find a solution to Africa's heavy debt burden. As part of his schedule, Mr Wenchang would hold bilateral talks with Mr Hackman Owusu-Agyemang, Minister of Foreign Affairs and lay a wreath at the Kwame Nkrumah Mausoleum.
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