If the Akufo-Addo administration truly needs Germany’s assistance in persuading China and the international community to agree to a debt relief package, it should reduce its spending and reduce the size of its government, according to the German Ambassador to Ghana, Daniel Krull.
Germany has been pleading with Ghana for the past month to get China to agree to a creditors meeting so that the country can agree on a debt relief package.
Mr. Krull said to the press on Friday that it is strange that Ghana is crying out for help from the international community while continuing to run a government that is bigger than Germany’s.
“I can only compare with other nations similar to mine, and I can only conclude that the number is significantly higher than in my nation. As a result, I may conclude that there may be room for improvement.
“Well, of course, it greatly depends on the type of expenditures you’re looking at… I’m convinced this is true because if I look at the budget of the German Foreign Ministry of the German government, I’m convinced that there are important tasks that can be cut without affecting economic development. Without going into specifics, I’m also convinced that this holds true for Ghana. It must be included in the package because there are certain expenses that can be significantly reduced and have a significant impact.
I mean, I can’t go to the international community and say I need help, but I won’t cut costs from my budget. I must be careful not to reduce social spending, which is destroying families and lives. I must exercise extreme caution to avoid taking actions that could hinder economic expansion.
He continued, “But I’m convinced there are many expenditures that could be looked at very carefully and can be reduced significantly.”
In addition, Mr. Krull warned that China’s refusal to accept a debt relief package could result in the IMF rejecting the $3 billion bailout request.
He stated that Ghanaian officials have attempted to convince China to commit to the establishment of a creditors’ committee in order to reach an agreement on a debt package.
We are prepared to assist Ghana when others are, so all major creditors must be prepared to do so. China is the big elephant in the room. China is Ghana’s largest creditor, and China has so far shown no support for the establishment of a creditors’ committee to negotiate a package of aid for Ghana.