Cut your budget if you want our help – German Ambassador to Ghana

The German Ambassador to Ghana, Daniel Krull, has advised the Akufo-Addo-led administration to cut its expenditure and the huge size of government if it sincerely needs Germany to help convince China and the International Community to agree to a debt relief package.

Ghana has been begging Germany in the last month to convince China to commit to a creditors meeting to agree on a debt relief package for the country.

Addressing the press on Friday, Mr Krull said it is strange for Ghana to be crying to the international community for help but continues to operate a government bigger than that of Germany.

“I only can compare with other countries like my own and I can just come to the conclusion that the number is much higher than in my country. So that might bring me to the conclusion that maybe there’s room for improvement.”

“Well, of course, it depends very much on what kind of expenditures you’re looking at… I’m convinced this is true for if I look at the budget of the German Foreign Ministry of the German government, I’m convinced there are important tasks that can be cut without hurting economic development. And I’m convinced without going into details this also is true for Ghana. There are certain expenditures that can be lowered substantially and make an important impact, and it has to be part of the package.

“I mean, I cannot go out to the international community and say I need help, but I’m not willing to cut my own budget expenditures. I have to be careful not to cut the social expenditures that are destroying lives and families. I have to be very careful not to take measures that might negatively impact economic growth.

“But I’m convinced there are many expenditures that could be looked at very carefully and can be lowered substantially,” he said.

Mr Krull also warned that the $3 billion bailout being sought from the International Monetary Fund is in danger of not being approved if China fails to agree to a debt relief package.

He said China has so far rejected attempts by officials from Ghana to engage them to commit to the setting up of a creditors’ committee for an agreement on a debt package.

“We are ready to take our part when others are ready to do that, so all major creditors must be ready to help Ghana. The Big elephant in the room is China. China is the largest creditor to Ghana and so far [China] is not supportive of setting up of a creditors’ committee, where the creditors will sit down and agree on an aid package for Ghana.”