Ghana’s domestic debt has hit GH¢56 billion. Government added about GH¢2 billion to the debt stock in the first two months of this year.
Former Deputy Governor of the Bank of Ghana, Dr. Mahamudu Bawumia warned two weeks ago that the trend of borrowing by government could have long term ill consequences on the economy. Other Economic watchers have shared similar worries. Central Bank Governor Dr Hendy Kofi Wampah however says the debt stock is neither strange nor bad.
“I don’t think that the debt situation of Ghc56 [billion] is bad. It is the trajectory and how quickly it is growing that we need to look at. 50 or 55 percent is not entirely out of this world,” Dr Wampah told Journalists on Wednesday when the Monetary Policy committee met to announce the new policy rate.
According to him, “it is how it is moving and whether the trajectory will take you toward a critical level. That is what you need to look at and I think that that is what is of concerned to both the minister of finance and also to the Central Bank and that is why there’s this fiscal consolidation.”