Gov’t adds GHS10bn to public debt in 4 months

General News of Wednesday, 18 February 2015


Mahama In Germany 44

Joy News has gathered that Ghana’s public debts stands at GHS76bn from an increase of GHS10bn in four months.

The Bank of Ghana at a Monetary Policy Committee Meeting in November 2014 put the public debt at as August 2014 stood at GHS66 billion.

But latest figures from a February 2015 MPC meeting put the new debt figure at GHS76.1billion as at December 2014.

Public debt which is a total of external and domestic borrowing and interest payments is now 67% of the total value of the economy.

Ghana is now three points away from hitting 70 percent, which could mean inching closer to HIPC.

But GHS10bn in four months may not mean extra borrowing. The debt level could simply increase through default payments on the interests on debts.

But Deputy Minister Mona Quartey, has assured Ghanaians that government was showing “more discipline” in managing the debts. She maintained that very soon the rewards of such discipline would become apparent.

“We are not going to HIPC. We are going into a three-year IMF programme. We have been there [HIPIC] once and we are not going back there”, she told Joy News.

“We move forward not backwards” she encouraged, saying Ghanaians should “declare and decree” positive confessions.