HON MINISTER OPENS COMMONWEALTH SEMINAR ON DEBT NEGOTIATION AND RE-NEGOTIATION.

Hon. Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning has opened a seminar on debt negotiation and re-negotiation for legal and finance experts from Commonwealth countries in Accra.

The seminar is which is being attended by about 30 delegates from eight Commonwealth Countries in Africa is expected to create awareness and equip participating countries with the requisite skills in effective debt management.

It is also intended to strengthen the existing know how and expertise of participants on debt litigation and better negotiation for loan agreements by familiarizing participants with relevant conventions, terminologies and practices in the field of law and finance.

In his opening remarks Hon Minister expressed concern about the rise in legal suits against sovereign creditors adding that this undermines the purpose of the debt relief initiative under HIPC since countries end up incurring more debts as a result.

“it is estimated that, about US $1.0 billion has been awarded to litigating creditors since the inception of the initiative which may nullify the net benefits of the initiative” he stressed.

Hon. Minister who is also chair of the Commonwealth Ministerial Debt Sustainability Forum (CMDSF) said to deal with this challenge, the Commonwealth Secretariat has come out with a paper which proposed a one stop legal Referral Service to deal with law suits.

To be known as the “debt clinic” it would among other things provide in house legal service to HIPC countries facing or likely to face legal litigation, advise sovereign debtors on loan agreements and conduct regional seminars to create awareness of loan agreements, debt relief and the restructuring processes.

Already the Debt Clinic has held its maiden regional workshop in Kingston Jamaica which was attended by eight Caribbean countries, he disclosed.

The seminar is being organised by the Commonwealth Secretariat, participants are from Cameroon, Mozambique, Sierra Leone, United Republic of Tanzania, Malawi, Uganda and Zambia and Ghana.
END