China writes off some $36 million debt Ghana owes, here's why

The Chinese government has decided to write some $36 million (250 million Yuan) debt Ghana owes the country.

China writes off some $36 million debt Ghana owes, here's why

The government added that it has given Ghana an additional 300 million Yuan grant to assist in its development process.

This was revealed when the Chinese Vice-Premier, Sun Chunlan had a meeting with the Vice-President of Ghana Dr Mahamudu Bawumia at the Jubilee House on Monday, November 10, 2019.

The Chinese Vice-Premier commended the Akufo-Addo administration for its commitment to the development of Ghana, which has led to the implementation of programmes such as Planting for Food and Jobs, One-District One-Factory, One-District One-Warehouse and the Free Senior High School, which would have a direct, major impact on lives.

“Since I arrived yesterday, I have been impressed with the warmth of your government and the policies you are implementing to develop Ghana. I wish you all the best,” she said.

Adding his voice, Vice-President Dr Bawumia expressed the government’s appreciation for the financial support China had offered to Ghana made up of a 300 million Yuan (approximately GH¢236.18/$42.79m) grant and a debt write off of 250 million Yuan (approximately GH¢196.82m/$35.66m).

He said, “We are also very grateful for your support in the vocational and technical institutes that you are helping us to put together which you are helping us to launch today.”

Adding that “It is important because Ghana wants to learn from China, and we know that in China, the development of the skills of the people is very important. This is why the technical and vocational training is very important and why your support is most appreciated.”

Meanwhile, the first tranche of the ‘bauxite for development’ barter agreement, popularly known as Sinohydro deal, which was signed between the Government of Ghana and the People’s Republic of China, has been released.

Dr Bawumia said under the agreement, the projects had been grouped in lots, and their review and approval were underway.

He said major progress had been made and both governments were determined to ensure the success of the barter deal, which would see the leveraging of a fraction of Ghana’s bauxite to undertake a massive overhaul of its infrastructural, industrial and agricultural base.

“I want to thank you and the Government of China for our Sinohydro facility. I’m happy that Sinosure (China Export & Credit Insurance Corporation) has approved the first lots of the Phase One. We are happy with the progress. There was a time when people thought maybe it would not materialise but it has materialised, and we hope that the rest of the first phase would come through by March 2020,” the Vice-President noted.

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