GRi Business, Economics & Finance 20 - 05 - 2002
Paris Club cancels Ghana's debt
Minority urges government to save rice farmers
Insure Businesses against risks-Vanderpuye
Accra (Greater Accra) 20 May 2002- 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.
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Accra (Greater Accra) 20 May 2002- The Minority on Saturday urged the government to purchase rice in the north to fulfil its intended buffer stock project to encourage farmers to increase production. It said the government pledged in its budget that it would pursue a "programme for purchasing buffer stocks and also increasing processing to reduce post-harvest losses" for maize and rice to be used in buffer stock project.
Mr. Alban Bagbin, Minority Leader in a statement said that pledge meant that farmers must increase production of rice in return for government guarantee prices and adequate facilities and which have turned sour. He said a visit to some parts of the Northern Region showed that "many farmers with barns full of rice could neither market nor store in modern facilities."
Mr Bagbin said a farmer had produced 3,500 bags of paddy rice last year and the government purchased a 1,000 bags from him on credit and has since failed to settle the debt. "His broken down machines and implements cannot be repaired in good time for this year's farming activities."
"As it is turning out, the sweets of electoral success must have been strong on the Finance Minister's tongue when he red out the plethora of budget promises for the year. Mr Bagbin regretted that there was so much hunger in the country where paddy rice was wasting away up North and the farmers were being furious and frustrated because government has failed to honour its side of the unsealed deal with rice farmers in the North.
He said "until our rice farmers are guaranteed attractive prices for their produce, government can hardly ever achieve the 2001 budgetary target to reduce rice importation by at least 30 per cent in value from the approximately 100 million dollars spent on importing rice annually to supplement local production."
The Minority Leader said the New Patriotic Party (NPP) government in its haste to send signals of positive change to Ghanaian farmers "sounded the dinner bell at a time when there was nothing on the plate." Mr Bagbin reminded the government that large-scale rice production goes beyond getting farmers to increase the size of their farms.
"Much groundwork should have been done to facilitate post-harvest activities especially, in processing and marketing. Encouraging farmers to step up production without first building a buffer stock project to take in the excess produce is an irresponsible waste of farmers' resources and time."
Mr Bagbin reminded the government to make good one of its promises to utilise the 100,000 metric tonnes per year world class rice mill at Aveyime to its fullest capacity while prompt action must be taken to empty the rice barns up North and in other parts in the country to guarantee some capital for farmers to cultivate more rice. He said the farming season has began and the poor farmers do not have time to spare.
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Accra (Greater Accra) 20 May 2002-Small-scale enterprises have been urged to take up insurance policies in order to derive the maximum benefits from those policies in times of risks.
Mr. Patrick H Vanderpuye, Sales and Marketing Manager at the State Insurance Company (SIC), who gave the advice said since the future could not be predicted, the only surest way for people in the business industry to guard their enterprises against unforeseen circumstances was to insure them. He was speaking at a day's information seminar on insurance for Micro and Small Enterprises (MSEs) in Accra.
It was organised by the Accra branch of the Business Advisory Centre (BAC) of the National Board for Small-Scale Industries (NBSSI) to sensitise the more than 100 participants drawn from Accra and Dodowa on the need to take up insurance policies in order to protect their businesses against the unexpected.
Mr. Vanderpuye, who touched on the types of insurance policies, urged the seminar participants to take immediate steps to insure their enterprises against the numerous future risks, so that should the unexpected happen, they would be relieved.
The Sales and Marketing Manager also urged them to take up the company's Child Education Policy for their school-going children so as to secure for them sound and quality education in the future. Mr. Emmanuel Odartey Lamptey, Greater-Accra Regional Manager of the NBSSI pledged the board's assistance to small-scale entrepreneurs to sustain their businesses.
Mr. Lamptey further assured them of the board's preparedness to give them the needed advice as to how to get the money to pay the premium on the insurance policy they decided to take. Mrs. Irene Otoo, the Metropolitan Officer of the BAC pledged her outfit's desire to ensure that operators in the MSE sector were well-informed about the insurance scheme, "to enable them make the necessary adjustments and plans to suit their businesses."
Mrs. Otoo reminded them that, since "the businesses that you have today will be the same businesses that will take care of you later on in life, you should take the centre's constant education seminars on insurance with all the seriousness they deserved."
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