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12.08.2004 Business & Finance

Germany cancels Ghana's debt

Germany cancels Ghana's debt
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Accra, Aug 12, GNA- The Federal Republic of Germany has, in accordance with Ghana reaching the Highly Indebted Poor Countries (HIPC) completion point, cancelled Ghana's debt owed her.

"There is no outstanding debt between our two countries and I am looking forward to sign the relevant agreement in due course", Mr Peter Linder, German Ambassador, said at an agreement signing ceremony in Accra on Thursday.

The agreement is on the "Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to taxes on Income, on Capital and on Capital Gains" to help promote investments and business organisations in the two countries.

Commending the Government of Ghana for her efforts in reaching the HIPC completion points, Mr Linder said Germany made the decision to cancel the debts following the decisions of the Paris Club on July 22. He said with that decision, Germany is to cancel all debts out of commercial claims and all debt resulting from disbursed Financial Cooperation.

Mr Yaw Osafo-Maafo, Minister of Finance and Economic Planning, thanked Germany for the decision and said Germany had to date contributed 2, 774.2 billion cedis towards Ghana's economic development. He mentioned the sectors of Ghana/Germany bilateral cooperation as agriculture and food security, development of market oriented economy, and civil society, good governance and public administration.

Other sectors in which Germany had made significant interventions were the water, sanitation and road sectors, the Minister said.

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