Italy to cancel Ghana's debt

Italy announced its intention to cancel about 100 million dollars commercial and bilateral debt owed her by Ghana as part of a global initiative to grant relief to Highly Indebted and Poor Countries (HIPC).

Making the announcement at a meeting with Foreign Minister Hackman Owusu-Agyemang in Accra, the Italian Ambassador, Giancarlo Izzo, said the gesture is in appreciation of government's bold steps and eagerness to seek relief of the debt burden and reduce poverty.

The global initiative, led by the G7, is providing some 4.1 billion dollars to offset the debt burden of poor countries.

Mr Izzo said some 12 more Italian investors are expected to establish in Ghana in recognition of the confidence Italian businesses have in Ghana's future potentials.

There are presently some 70 Italian companies operating in Ghana. "We have high hopes about Ghana's ability to sail through the current difficulties and become one of the leaders in the continent."

He called for a review of the double taxation system in favour of foreign investment in the country.

Ghana should also strive to boost her trade with Italy, which has weighed heavily in favour of the European country in the past three years.

In 1998, Ghana exported 56.9 million dollars of goods to Italy while she imported 120.8 million dollars worth of goods.

In 1999, the value of Ghana's exports dropped to 55.9 million cedis and imports also dropped to 116.7 million dollars.

Last year, the figure dropped further to 47.3 million dollars while that of Italy shot up to 155.1 million dollars.

Mr Owusu-Agyemang expressed appreciation to the Italians for supporting Ghana in her HIPC status and even going beyond the expected by cancelling commercial debts.

He said contrary to criticisms that the HIPC option was unwise, government took the decision after a careful consideration of all the facts available to it at the time.

"We needed a breather," he explained, adding that the option would help government fill the debt gap of about 350 million dollars.

The Foreign Minister mentioned reports of discourtesy towards Ghanaian immigrants who call at the embassy to obtain travel permits including visas and appealed to the Ambassador to advise his staff to handle applicants with dignity.

Trade between Ghana and Italy has generally been in the area of agro-processing and tourism.

The Nigerian High Commissioner also called on Mr Owusu-Agyemang with a special message from President Olusegun Obasanjo.