An International Development Expert, Dr Ishmael Hlovor has advised government to lower its expectations ahead of the meeting with China.
Reports indicate that a high-powered government delegation is expected to travel to China to appeal for a possible relief from the $1.7 billion debt.
Dr Hlovor believes that if China would agree to give the country some debt relief, it would be on their terms.
“Over the years, if you look at the Chinese debt cancellation and restructuring, they normally do it on their own terms.
“Even if we are able to make contact with the Chinese officials, we must remember that China does not operate within the G20 framework where there are clearly laid down rules and structures for debt cancellation and debt forgiveness,” he said.
Speaking in an interview with JoyNews’ Blessed Sogah on The Pulse, on what Ghana should expect ahead of its meeting, he explained that it might be difficult for China to clear Ghana’s debt since it might alter other financial deals with other countries.
“Remember China as a lender has lent to so many developing countries and therefore any debt restructuring agreement with any of these debtor nations will automatically translate into you coming to agree to a similar term in other nations so we must put all these variables together,” he said on Tuesday.
Dr Hlovor stressed that although China in the past was seen to have cancelled debts of countries, “most of the debts they have cancelled are debts that are zero interest loans which are nearing maturation.
“In 2019 for instance, about 27 countries’ debt were cancelled. But if you scrutinise those loans, they were those loans that are getting to maturation and there is something small left on them, but our situation is a little bit complicated because of commercial lending,” he added.
Ghana has set up a committee which all its creditors are members except China, the country’s biggest creditor.
This, government fears, might derail its progress and subsequently hinder the process of getting signed on an International Monetary Fund programme.
Attempting to explain the reason for China’s absence from the committee, the Development Expert said February is a period the country took time off business engagements for family commitments.
