Minister of Finance condemns the HIPC initiative

The Weekly Insight says for the first time in seven months, Hon Yaw Osafo Maafo, the Minister of Finance has admitted that the adoption of the HIPC initiative could have a negative impact on the national economy. He did not elaborate.

Contents of a Memorandum of Understanding with Samsung Corporation signed by the Minister admitted, according to Insight that "the application of Paris Club debt rescheduling and HIPC debt relief to Samsung Loans will have serious negative impact both on Samsung Corporation… and the economy of Ghana"

The paper submits that in the past Mr Maafo had insisted that HIPC has no negative sides persistently claiming that the initiative is only about debt relief and poverty alleviation.

Mr Maafo's mantra had also been repeated on many occasions by Dr Paa Kwesi Nduom, Minister with responsibility for Regional Integration and Economic Planning and he has even claimed that the adoption of the HIPC initiative will contribute significantly to poverty reduction and that Ghana would get reliefs in a matter of months.

Well placed sources however say that Ghana is not likely to get any HIPC relief before January 2002.

A number of organisations including the Peoples National Convention (PNC), the Convention Peoples Party (CPP), the Great Consolidate Popular Party (GCPP), the Socialist Forum of Ghana, the Trades Union Congress (TUC) and the Ghana Bar Association (GBA).