U.S. Senator demands Ghana repay $251m debt to American firms before IMF loan approval

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U.S. Senator James Risch has called for Ghana to settle $251m owed to American businesses before IMF loan approval. Read more.

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Senator James E. Risch, a Ranking Member of the U.S. Senate Committee on Foreign Relations, has urged Treasury Secretary Janet Yellen to leverage the United States’ influence as the IMF’s largest shareholder to demand Ghana repays $251 million owed to American companies before any further IMF assistance.

According to a publication by Myjoyonline.com, Senator Risch in a letter expressed concerns about the pending $3 billion IMF loan to Ghana, citing significant arrears owed to firms like Twin City Energy, American Tower Company, Kosmos Energy, and Zipline.

“It is my understanding that the government of Ghana owes approximately $251 million in outstanding payments to American companies,” Senator Risch wrote.

He emphasised that these debts are causing financial strain on U.S. businesses operating in Ghana, with some investments backed by U.S. taxpayers through the Development Finance Corporation (DFC).

“These unpaid debts place substantial financial strain on U.S. businesses in Ghana and jeopardise their operations and investments.

The Senator recommended that IMF disbursements to Ghana be contingent on a concrete repayment plan, complete with auditing and enforcement measures.

He also suggested allocating portions of the IMF funds to clear the arrears.

Senator Risch warned that ignoring these debts could harm U.S. businesses, set a bad precedent for other borrowers, and deepen Ghana’s dependency on international aid.

He called for prioritising this issue ahead of the IMF’s review of Ghana’s Extended Credit Facility this month.