Chinese officials have pledged to assist Ghana in overcoming its present short-term cash problems.
China will also keep supporting Ghana's long-term and medium-term development goals.
According to Liu Kun, China's finance minister, the country supports sustainable development and debt management.
When Ken Ofori-Atta, the minister of finance, led a high-level ministry delegation to China to have bilateral negotiations with his Chinese counterpart and other Chinese officials, he offered the guarantee.
The recent macroeconomic events in Ghana and the consequent request for assistance from the International Monetary Fund (IMF) as well as the G20 Common framework were topics of debate.
Engagement
Dr. Winfred Nii Okai Hammond, Ghana's ambassador to China, along with Mr. Ofori-team, Atta met with top-ranking Chinese government representatives, including Minister Liu Kun, China's finance minister, Chairman of the Export-Import Bank of China (Exim Bank), Wu Fuli, Vice-Minister Deng Li, Vice-Minister Li Fei, and Vice-President Zhang Wencai.
Others were Luo Zhaohui, Chairman of the China International Development Cooperation Agency (CIDCA), Yang Haitao, General Manager of the International Commercial Bank of China (ICBC), and Wang Weidong of the China Development Bank (CDB).
After presentations by Mr. Ofori-Atta outlining the justification for the visit for bilateral negotiations over Ghana's debt, the Chinese finance minister provided guarantees. In to order to examine Ghana's request for debt treatment, Mr. Ofori-Atta commended the Chinese authorities for their helpful attendance at the G20 Creditor Committee meeting on Tuesday, March 21, this year in Paris.
Both other creditors and members of the Paris Club were present at the meeting.
According to the finance minister, China's participation demonstrated its leadership in the global financial system and confirmed its support for Ghana.
Pressures
Mr. Ofori-Atta recalled previous events that had severely strained Ghana's financial situation.
On the advancements the nation has achieved so far, he stated that a committed team from the fund and ministry worked tirelessly to attain Staff Level Agreement (SLA) in just five months, a nearly record-breaking amount of time.
The finance minister informed his Chinese counterpart that significant budgetary reforms, debt restructuring, and financial assurances were necessary for Ghana's Fund project.
He talked about how the nation had just through a difficult but essential Domestic Debt Exchange Program, with a participation rate of 85%, which he said showed the nation's readiness to take the required steps to realign its fiscal course.
Chinese backing
In an answer, Mr. Kun stated that "we realize that these are short-term issues that we, as responsible creditors, are committed to resolving" and that "the longstanding and successful relationship between Ghana and China puts on us, a responsibility to help".
The Chinese Finance Minister continued by expressing his nation's desire that multilateral and commercial creditors will equally share the burden by participating fully.
According to Mr. Kun, "China authorities have faith in Ghana's economic management and its long-term economic sustainability."
He continued by saying that, like other African nations, Ghana was experiencing economic challenges as a result of a pandemic that would only happen once in a lifetime, ongoing geopolitical tensions, and ongoing interest rate increases by developed economies that were having a knock-on effect on developing nations.
Co-chair
The Chinese authorities responded positively to Mr. Ofori-request Atta's for China to co-chair the Official Creditor Committee, saying they would take it into consideration.
The Chinese additionally pledged to promote more grants and concessional assistance for Ghana, particularly at this difficult time.
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