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BusinessGerman Ambassador clarifies Ghana's expenditure reduction reports during World Bank Loan request

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German Ambassador clarifies Ghana’s expenditure reduction reports during World Bank Loan request

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In an article that was published on February 25, 2023, the German ambassador to Ghana, Daniel Krull, clarified any misunderstandings over stories that indicated his position on Ghana’s expenditure reduction during the World Bank loan application process.

The initial piece, which was distributed across a number of media outlets, quoted Ambassador Krull as saying that Ghana’s government could not request aid from outside while also refusing to reduce spending.

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The ambassador, however, claimed that his viewpoint had been misrepresented.

Ambassador Krull addressed the discrepancy between his actual words and how they were reported by the press and social media exclusively with Doreen Abanema Abayaa on GhanaWeb Special.

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“There was what I said, and that was what was reported, reportedly. Social media is a very huge difference between the two, and I never advised to cut down on parliamentarians,” he stated.

Ambassador Krull made a point of emphasizing that his comments were consistent with the fiscal approach Ghana and the International Monetary Fund (IMF) had jointly agreed upon.

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He emphasized that his remarks were entirely consistent with the framework established during talks.

“I think what I reflected in that interview was precisely what Ghana agreed with the IMF. Not more, not less, and I think it’s by now in a way, common sense,” he added.

The ambassador also placed his remarks within a broader global context, discussing collaborative efforts aimed at assisting Ghana through its fiscal challenges.

“I think I clearly flagged that Germany is willing to help, and we do that in a certain context, and the context that all the other countries are also willing to help, especially all the other creditors, especially the big ones, especially China,” he stressed.

He added another level of complexity to the situation by highlighting the ongoing difficulties in the creditor’s committee negotiations.

The ambassador emphasized the importance of Ghana’s commitment to upholding its financial obligations.

“And I added also, the obvious fact that, of course, Ghana has to do its homework,” he stated.

He reemphasized that the Ghanaian government had communicated its intentions to the IMF, aligning with his original remarks.

This approach entails a concerted effort to curtail expenditures and bolster revenue sources, aligning with the consensus reached between the IMF and the Ghanaian government.

Watch the full interview with Doreen Abanema Abayaa on GhanaWeb TV below:

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