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United States Senator James E. Risch, Ranking Member of the Senate Committee on Foreign Relations, has urged Treasury Secretary Janet Yellen to require Ghana to address its outstanding debts to American companies as a condition for U.S. support of further International Monetary Fund (IMF) assistance.
In a formal letter to Secretary Yellen, Senator Risch highlighted Ghana’s $251 million in arrears owed to U.S.-based businesses, including Twin City Energy, American Tower Company, GSM, Chubb, Kosmos Energy, and Zipline. These debts, he said, have significantly strained the financial operations of these companies in Ghana.
The senator expressed concerns over the potential approval of a $3 billion IMF loan for Ghana, arguing that the loan could proceed without addressing these arrears, setting a dangerous precedent for other sovereign borrowers and negatively impacting U.S. companies abroad.
- Economic Strain: Ghana’s arrears to U.S. businesses threaten their operations and investments, with some companies’ projects backed by the U.S. International Development Finance Corporation (DFC).
- Transparency and Accountability: Senator Risch called for a repayment plan tied to transparent auditing, reporting, and enforcement mechanisms.
- Conditional IMF Assistance: He recommended that portions of the IMF disbursement be allocated specifically to clear debts owed to American entities.
Senator Risch warned that neglecting these debts could weaken U.S. engagement with Ghana and exacerbate its dependence on international financial assistance. He emphasized that future U.S. support should be contingent on responsible fiscal practices and fair treatment of American companies.
The letter was copied to key officials, including Secretary of State Antony Blinken, U.S. Executive Director of the IMF Elizabeth Shortino, and DFC CEO Scott Nathan.
