“$2.8 billion debt relief will ease economic pressure and support IMF reforms” – Prof. Gatsi
Prof. John Gatsi, Dean of the University of Cape Coast Business School, has stated that the $2.8 billion debt relief secured by the government will help ease the burden on the economy and support debt repayments.
He emphasized that this relief will allow the country to meet its debt obligations while staying committed to its creditors.
Professor Gatsi also noted that the Memorandum of Understanding (MoU) is crucial as Ghana moves forward with structural reforms under its $3 billion IMF program.
According to Prof. Gatsi, “This is a partial debt relief to allow the country to be able to continue to save its debt. We still have commitment towards those countries to pay the debt. And what is important is that in the past, China has a stand.”
“The stand is that the debt from China were combined into multilateral debt and the commercial debt. And the argument of China was that they are also a sovereign nation and the debts that they give to countries could be treated as multilateral or bilateral because the IMF debt is considered to be multilateral.
He continued to say, “Therefore, it’s not subject to the debt exchange program, so they were not forthcoming. So now that they came on the table and that yielded $280,000,000.00, so that we can now have that relief and continue to pay the debt.”
