In a stern warning, US Senator James E. Risch has urged the Ghanaian government to repay its outstanding debts to American companies, totaling approximately $251 million.
This demand comes as Ghana prepares to receive another tranche from the $3 billion loan from the International Monetary Fund (IMF).
Senator Risch, Ranking Member of the US Senate Committee on Foreign Relations, expressed concerns about Ghana’s unpaid debts to several US-based businesses, including Twin City Energy, American Tower Company, GSM, Chubb, Kosmos Energy, and Zipline.
These arrears have placed a significant financial burden on these companies, threatening their operations in Ghana.
The senator’s warning is not without precedent.
Ghana has struggled with debt repayment in the past, and this latest development may jeopardize the country’s ability to secure future IMF assistance.
Senator Risch emphasized that the US will only support further IMF aid to Ghana if the country commits to repaying its debts to American entities.
A Repayment Plan with Teeth
Senator Risch proposed a repayment plan that includes transparent auditing, reporting, and enforcement mechanisms to ensure compliance.
He also suggested allocating portions of the IMF disbursement specifically to clear debts owed to American companies.
This plan aims to prevent Ghana from deepening its reliance on international financial assistance while neglecting its obligations to US private-sector partners.
A Warning to Ghana and the IMF
Senator Risch’s letter to US Treasury Secretary Janet Yellen serves as a warning to both Ghana and the IMF.
He cautioned that proceeding with IMF disbursements without addressing Ghana’s debt obligations could undermine constructive US engagement with Ghana.
The senator urged the US Treasury and its executive director at the IMF to prioritize the resolution of Ghana’s outstanding debts, tying future US support to responsible fiscal practices and fair treatment of American interests abroad.
-BY Daniel Bampoe