US embassy cable - 05ACCRA650

UNCLAS ACCRA 000650 
 
SIPDIS 
 
DEPT PASS EXPORT IMPORT BANK 
 
E.O. 12958: N/A 
TAGS: EFIN, KTIA, KMCA 
SUBJECT: AMBASSADOR AND FINANCE MINISTER SIGN BILATERAL 
PARIS CLUB AGREEMENT 
 
REF: A. STATE 32572 
     B. 2004 STATE 177743 
 
1.  Ambassador Yates and GoG Finance Minister Kwadwo 
Baah-Wiredu signed the bilateral Paris Club debt reduction 
agreement (Refs A and B) on Thursday, March 31, 2004.  Under 
the agreement, the U.S. forgives USD 4,641,600, which 
represents 100 percent reduction of the eligible stock of 
debt owed to the U.S.  (Note: ExImBank holds the debt treated 
by this agreement.  End Note) 
 
2.  Per Ref B instructions, Post faxed a copy of the original 
to Tim Forsyth and Alisa Wong in EB/IFD/OMA, and pouched the 
original to Karen Ghaffarkhan in L/T.  The Ambassador and 
Finance Minister signed two copies, with the GoG retaining 
one original, executed agreement.  Embassy has also kept a 
copy for its records. 
 
3.  Post issued a press release with photos to local media 
announcing the signing and congratulating the GoG on its 
impressive economic achievements over the last two years, 
which culminated in the IMF/World Bank approval of HIPC 
completion point in early July 2004 and subsequent Paris Club 
approval of debt reduction (under "Cologne terms") for Ghana 
on July 22, 2004. 
 
4.  Post emphasized in its press release that the USG is 
supporting Ghana's development in a number of ways, including 
providing large grant assistance from USAID (approximately 
USD 550 million since 1995), military to military assistance, 
and visitor and cultural programs through Public Affairs, and 
also noting that the U.S. has included Ghana among the 16 
countries eligible for significant grant assistance under the 
Millennium Challenge Account. 
 
5.  Comment:  Post expected the Minister to raise the 
possibility of forgiveness of post-cutoff date ExIm debt 
(totaling approximately USD 100 million).  The Minister did 
not raise this issue during the meeting, but we are aware 
that members of his staff are working on a formal request. 
The GoG did not issue its own press announcement following 
the signing.  End Comment 
 
6.  Post appreciates the strong support from EB/IFD/OMA (Tim 
Forsyth and Alisa Wong) and ExImBank (Cheryl Moriarty, 
Esteban DelaRiva, and Thomas Matthias). 
YATES