Senator James E. Risch, the Ranking Member of the United States Senate Committee on Foreign Relations, has called on U.S. Treasury Secretary Janet Yellen to leverage America’s influence as the largest shareholder of the International Monetary Fund (IMF) to ensure Ghana repays its debts to American companies. In his formal appeal, Senator Risch emphasized that U.S. support for further IMF assistance to Ghana should be contingent on a firm commitment from the Ghanaian government to settle its financial obligations.
Picture: Ranking Member of the United States Senate Committee on Foreign Relations, Senator James E. Risch
The senator revealed that Ghana owes approximately $251 million in arrears to several American businesses, including Twin City Energy, American Tower Company, Chubb, Kosmos Energy, and Zipline. He noted that these debts have placed a severe financial burden on these companies, jeopardizing their operations and investments in Ghana. Senator Risch expressed concern that these unpaid debts also affect investments backed by the U.S. International Development Finance Corporation (DFC), which relies on taxpayer funds.
In a letter addressed to Secretary Yellen, Senator Risch highlighted the broader implications of Ghana’s debt situation. He warned that approving further IMF disbursements to Ghana without addressing its arrears could set a damaging precedent for other sovereign borrowers. Moreover, it risks discouraging U.S. companies from pursuing investments abroad if such obligations are consistently overlooked.
Senator Risch proposed that portions of future IMF disbursements to Ghana be specifically allocated to clearing these debts. He also suggested implementing transparent auditing, reporting, and enforcement mechanisms to ensure Ghana adheres to a repayment plan. He stressed that U.S. support for additional IMF aid should be tied to Ghana demonstrating a good faith effort to repay the outstanding amounts.
Picture: US-Ghana relations could be streched if the debt is not repaid
Failure to resolve these debts, he cautioned, could harm U.S.-Ghana relations and undermine constructive engagement between the two nations. Furthermore, it could deepen Ghana’s reliance on international aid while neglecting obligations to its private-sector partners. Senator Risch emphasized that fair treatment of American interests abroad is crucial to maintaining economic trust and strengthening bilateral partnerships.
The letter, which was copied to U.S. Secretary of State Antony Blinken, IMF Executive Director Elizabeth Shortino, and DFC CEO Scott Nathan, underscores the urgency of addressing Ghana’s arrears. With the IMF Board of Directors set to review Ghana’s Extended Credit Facility program later this month, the senator called for prioritizing accountability and responsible fiscal practices.
This situation serves as a reminder of the importance of fulfilling financial commitments. As Proverbs 22:7 wisely states, “The rich rule over the poor, and the borrower is slave to the lender.” For Ghana, meeting its debt obligations will not only reinforce its reputation as a reliable partner but also uphold principles of integrity and accountability.