A ranking member of the United States Senate committee on foreign relations, James E Risch, has asked the Treasury secretary, Janet Yellen, to leverage the position of the US as the largest shareholder in the International Monetary Fund to ask the IMF to get Ghana repay its debts to US entities.
It will be the precondition for US support for further IMF assistance to Ghana, he warned.
Expressing formal concerns about the potential US$3 billion International Monetary Fund loan to Ghana, Senator Risch cited significant unpaid debts owed by the Government of Ghana to American companies.
In a letter addressed to US Treasury Secretary Janet Yellen, Senator Risch claimed that Ghana owes approximately $251 million in arrears to several US-based businesses, including Twin City Energy (TCE), American Tower Company, GSM, Chubb, Kosmos Energy and Zipline.
These arrears, he noted, have placed a severe financial burden on these companies and threaten their operations in Ghana.
Financial strain
“It is my understanding that the Government of Ghana owes approximately $251 million in outstanding payments to American companies,” Senator Risch wrote.
“These unpaid debts place substantial financial strain on US businesses in Ghana and jeopardise their operations and investments.”
Senator Risch expressed apprehension that the IMF’s anticipated approval of a $3 billion extended credit facility for Ghana would proceed without addressing these outstanding debts.
He argued that it could set a harmful precedent for other sovereign borrowers and affect US companies operating abroad negatively.
The senator emphasised that two of the affected companies, Twin City Energy and Chubb, have investments backed by the US International Development Finance Corporation (DFC), meaning that Ghana’s arrears affect not only private businesses, but also investments financed by US taxpayers.
Clear debts owed
Urging Secretary Yellen to leverage the United States’ position as the IMF’s largest shareholder, Senator Risch maintained that US support for further IMF assistance to Ghana be made contingent upon the Ghana government’s commitment to repaying its debts to American entities.
“I urge you to direct our executive director at the IMF to make clear that US support for further IMF assistance to Ghana will depend on a good-faith effort to establish a concrete and enforceable repayment plan for the remaining outstanding arrears,” he said.
The proposed repayment plan, according to Senator Risch, should include transparent auditing, reporting and enforcement mechanisms to ensure compliance.
He also suggested that portions of the IMF disbursement be allocated specifically to clear debts owed to American companies.
Senator Risch warned that proceeding with IMF disbursements without addressing Ghana’s debt obligations could undermine constructive US engagement with Ghana and deepen Ghana’s reliance on international financial assistance.
“Allowing the next disbursement without addressing these concerns deepens Ghana’s reliance on international assistance while neglecting its obligations to US private-sector partners,” he cautioned.
The letter, copied to Secretary of State Antony Blinken, the US executive director of the IMF, Elizabeth Shortino, and the Development Finance Corporation chief executive, Scott Nathan, also pointed to the urgency of resolving the issue.
Senator Risch urged the US Treasury and its executive director at the IMF to prioritise the resolution of Ghana’s outstanding debts, stating that future US support should be tied to responsible fiscal practices and fair treatment of American interests abroad.
This development comes as the IMF board of directors prepares to review Ghana’s third programme under the extended credit facility later this month.
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