Ghana Receives International Support for HIPC initiative

The Vice-President of the International Monetary Fund (IMF), Mr Anupam Basu and the German Ambassador, Mr Christian Nakonz on Monday held separate meetings with the President John Agyekum Kufuor on the country's adoption of the Highly Indebted Poor Countries (HIPC) Initiative.

Mr Nakonz, who was the first to call on the President at the State House, said Ghana has taken a good step to avail itself of the positive aspects of the initiative to relieve the debt burden of the country and promote sound financial management.

He said a team from the German Ministry of Economic Co-operation and Development would visit the country after Easter to draw up a two-year development co-operation programme with the government.

German entrepreneurs would visit Ghana and other parts of Africa as a follow-up to explore investment opportunities.

Briefing the press after the meeting with Mr Basu, which was held in camera, Mr Osafo Maafo, Finance Minister, said the support of the IMF is very vital to the success of the HIPC, adding that a meeting would be held with the Paris club on the country's debts.

The Paris club is an International group of donors and lenders to the Third World. "We have to put cash flow on the repayment of debt," he explained. Mr Maafo said the privatisation of state financial institutions like the Ghana Commercial Bank is part of the conditions attached to the HIPC initiative.

He said Government would, however, insist that anybody interested in the bank maintains its local network.

Mr Maafo said that Agricultural Development Bank is, however, not on the divestiture list due to its strategic importance in the agriculture sector.

President Kufuor thanked The IMF and The German government for supporting the HIPC initiative, which he said, is the only way to stabilise the economy to promote development.

In another development Elhadj Mamadou Falilou Bah, Guinean Ambassador presented a special message from President Lansana Conte to President Kufuor on Monday at the State House.

The content of the message was not disclosed but it is believed to centre on bilateral relations.