According to Daniel Krull, the German ambassador to Ghana, China's reluctance to participate in the external debt restructuring process may be related to concerns about the effects on its relations with other African nations.
The diplomat explains that because China is currently the largest creditor to African nations, any agreement it ultimately comes to with Ghana regarding ongoing debt restructuring to assist the country in meeting criteria for an International Monetary Fund (IMF) bailout must be done to all the others who are seeking to reduce sovereign debts or who are approaching the Bretton Woods Institutions for bailouts.
We are aware that China has been quite hesitant to establish a creditors committee, which is an important decision to make at this time.
We are attempting to communicate with them since the Ghanaian government has been unable to do so directly. Yet, China is a major actor with a certain agenda for dealing with Africa.
"We must also be mindful that other nations face comparable difficulties, which makes the situation more complicated because it can affect not only Ghana but other African nations as well. As a result, this concerns not only Ghana but all of Africa, which explains China's reluctance to engage in negotiations with Ghana. Don't forget that China's economy has also been severely impacted by COVID-19 and is not in the best of position, he said.
Imperatively, he called on China to make a courageous internal choice right now and to join the negotiations so that Ghana might find a means to overcome its persistent economic problems, which are characterized by unmanageable public debt.
On what the German government is doing to assist Ghana in overcoming its problems, Mr. Krull emphasised that Germany is still dedicated to helping the nation during these trying times; however, such assistance must be provided within the parameters of international laws and norms.
"The recent trip to Ghana by senior German ministers and lawmakers shows our dedication to and readiness to provide help at all times, but especially during crises like this one.
We are ready to fulfill our obligation as one of Ghana's largest bilateral creditors, but only if certain requirements are met, the official added.
He said that, despite the fact that it might not be ideal, the G20 has a shared framework for resolving such crises and that Germany is committed to upholding it.
The ambassador also urged business leaders that enjoy strong connections with China to join him in pleading with that country to support Ghana.
In an interview with the media at his apartment following the arrival of the German employment minister, the ambassador offered these comments about the bilateral relations between the two nations.
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