On 16 June, 2003 the Minister for Finance and planning, the Hon. Yaw Osafo Marfo, and the German Ambassador Harald Loeschner, signed an agreement between the Government of the Republic of Ghana and the Government of the Federal Republic of Germany concerning the cancellation of debt by Germany within the framework of the Cologne Dept Initiative.

A total amount of 5.1million Euro is cancelled, consisting of 2.3million Euro loans in the for development cooperation, 0.7 million Euro commercial debts and 2.1million Euro from debts with the former GDR.

That debt cancellation is part of Germany's contribution to the enhanced HIPC initiative. The estimated volume of total debt relief under this initiative is US $ 70 billion. Germany's contribution to that amount is 5 billion Euro plus another 325million to be provided from the German Federal Budget in order to finance the debt relief accorded by multilateral creditors and the EU. Together with other bilateral dept relief granted by the Paris Club, HIPC debt levels will thus be reduced by two thirds in total, in accordance with the HIPC regulatory framework.