President John Agyekum Kufuor on Wednesday explained his government's decision to opt for the Highly Indebted Poor Countries (HIPC) initiative saying it was not political but based on an objective analysis of the economic situation.

"We did not take the decision to join HIPC as a political trick or gimmick but as an opportunity to take a breather to pursue medium to long term targets," the President said, when heads of UN agencies in Ghana called on him.

The group led by UN Resident Co-ordinator, Mr Alfred Sallia Fawundu was in the State House to express support to the new administration and also outline their programmes for the year.

Opting for HIPC is not in itself an end to the economic difficulties facing the nation, Mr Kufuor said and described as unfortunate certain comments by a section of the public whom, he believes, do not understand the issues.

"Unfortunately people are not understanding the issue. They talk as if HIPC is in itself an end (to the problems). HIPC cannot be an end, we'll need to work more to attain the desired goals."

There have been mixed reactions to the government's decision to opt for the HIPC initiative, which seeks to provide debt relief to cash-strapped countries based on the implementation of poverty alleviation strategies prescribed by the IMF and the World Bank.

While some hailed the decision with the belief that it would ease the heavy debt burden on the country, critics maintained that declaring oneself poor could pose credibility and image problems, especially for the private sector.

President Kufuor said there is no pride in declaring oneself poor. "Man must be practical, so we took HIPC as a reality and must work to turn the situation round."

He urged the UN agencies to have confidence in the government and remain its partners to bring development to the nation.

President Kufuor restated his vision to usher Ghana into a golden age of business, which he said, would be pursued through good governance, the rule of law and support for the private sector.

"We'll show to the world that we mean business, to set the pace for the sub-region."

He lauded the UN for its efforts at uplifting humanity on the globe and said his government would continue to co-operate with it and related agencies towards the creation of wealth for the people.

Mr. Hackman Owusu-Agyemang, Minister of Foreign Affairs, expressed gratitude to the UN agencies for their support to Secretary - General Kofi Annan, saying they should accept the credit of his achievements.

He said President Kufuor and the entire nation are keen on drumming up support for Mr Annan's second term and urged them to translate their efforts into a unanimous vote for him in December.

Mr. Fawundu said his group has been encouraged by unfolding political events in Ghana, particularly, the peaceful transition, which according to him, is rare in Africa.

Of more interest to the UN is President Kufuor's promise to hold his government and other public authorities accountable in the exercise of power through a code of conduct marked by zero tolerance for corruption, creation of wealth, as well as reduction of poverty, he said.

Mr. Fawundu commended government for its bold decision to opt for HIPC to reduce poverty and confirmed the organisation's commitment to assist in the realisation of the targets.

He pledged the UN's support and commitment to fully participate in a mini Consultative Group (CG) meeting scheduled for Wednesday, April 4, to determine types and forms of support required for the implementation of government's development agenda.