Senator James E. Risch, the Ranking Member of the U.S. Senate Committee on Foreign Relations, has called on Treasury Secretary Janet Yellen to use the U.S.’s influence as the IMF’s largest shareholder to condition further IMF assistance to Ghana on repayment of debts owed to American companies.
Why it matters
- Ghana’s unpaid debts — totaling about $251 million — to U.S.-based companies, including Twin City Energy, American Tower Company, Kosmos Energy, and Zipline, have raised concerns about financial strain and operational risks for these businesses.
- Two of these companies, Twin City Energy and Chubb, have U.S. taxpayer-backed investments through the International Development Finance Corporation (DFC).
What Risch is saying
In a letter to Yellen, Senator Risch emphasized the need for Ghana to make a “good faith effort” to address these arrears as a precondition for U.S. support of the IMF’s $3 billion Extended Credit Facility to the country.
- “These unpaid debts place substantial financial strain on U.S. businesses in Ghana and jeopardize their operations and investments,” Risch wrote.
- He warned that approving IMF disbursements without addressing these obligations could set a dangerous precedent for other sovereign borrowers and undermine U.S. interests.
The details
Risch proposed that IMF disbursements include measures to ensure Ghana clears its debts to American companies:
- Transparent auditing and enforcement mechanisms.
- Allocating portions of IMF funds specifically for debt repayment.
What’s next
The IMF Board of Directors is set to review Ghana’s program later this month. Risch’s letter, also sent to Secretary of State Antony Blinken and IMF U.S. Executive Director Elizabeth Shortino, signals growing pressure to tie future U.S. support to fiscal responsibility and fair treatment of American businesses abroad.
The bottom line
“Allowing the next disbursement without addressing these concerns deepens Ghana’s reliance on international assistance while neglecting its obligations to U.S. private-sector partners,” Risch cautioned.
Source: JoyNews
