Press Release
8 July 2004
UK welcomes Ghana's debt relief
The UK Government today welcomed news that Ghana's external debt could be halved as a result of its progress on poverty reduction. The International Monetary Fund (IMF) Board has announced that Ghana has reached Heavily Indebted Poor Countries (HIPC) Completion Point. This means Ghana's external debt will be reduced from $5 billion to $2.4 billion (if all donors provide the expected relief). To reach this point, Ghana has prepared and begun to implement a comprehensive Growth and Poverty Reduction Strategy, maintained macroeconomic stability and undertaken key structural reforms and social measures.
Hilary Benn, Secretary of State for International Development, said: "I am delighted that Ghana has successfully reached HIPC Completion Point. Britain played a major role in encouraging the then new Government of President John Agyekum Kufuor to apply for HIPC in 2001, and we have been strong supporters of the country's reform efforts since. Ghana has made good use of the additional resources which were freed up by the reduction in debt repayments. I remember during my visit in March this year being shown a school building and a toilet block built with HIPC funds and sporting a bright "HIPC benefit" logo. Now Ghana has an opportunity to go further and faster with its development plans."
Notes to Editors
1. Ghana was granted HIPC status in February 2002. It becomes the 14th country to achieve HIPC completion point.
2. HIPC is the Heavily Indebted Poor Countries Initiative, launched by the World Bank and IMF in 1996.
3. The UK is the largest bilateral donor to Ghana, providing over £60 million development assistance in the last financial year.
4. The UK is committed to providing £1 billion of development assistance to Africa by 2005/06 to help the continent reach the Millennium Development Goal of reducing poverty by half by 2015.
5. Africa will be a major priority for the UK's Presidency of the G8 in 2005. The Prime Minister has launched the Commission for Africa to take a fresh look at the challenges Africa faces. The Commission will report next spring. The Commission will assess policy on Africa (both within Africa and internationally) and look at where it has worked, where it has failed, where more could be done, and where more support is needed from the international community.
