Ghana could end up the Greece way if borrowing craze is not stopped- PAC chair

The Chairman of the Public Accounts Committee (PAC) of Parliament says Ghana’s economy is on the verge of collapse if the borrowing craze by government is not addressed.

According to Kweku Agyemang Manu the decision by government and its Finance Minister to keep borrowing to repay loans already contracted may well lead the country into the economic doldrums Greece is going through.

He made the comment on the floor of Parliament, Tuesday.

Ghana’s public debt according to the Bank of Ghana has hit 89 billion cedis with the government threatening to borrow more.

Joy FM’s Parliamentary correspondent Elton John Brobbey reported that Government has submitted to Parliament new loan agreements it wants approved.

The House has already approved a $400 million loan in respect of the first Micro stability for competitiveness and growth development policy financing between government and the International Development Association.

Government is also requesting approval of a 2015 Eurobond financing plan for an amount up to $1.5billion.

This Eurobond deal has provoked some debate among MPs in terms of the cost benefit implications that went into this agreement.

While still concerned about the impact of this Eurobond deal on the country, the Chairman of the Public Accounts Committee is even more worried with the general debt burden and loan repayment regime that Ghana has been plunged into.

I just in trying to add my voice to the debate and urging my colleagues to support the motion, I just want to sign a note of caution to the Finance Minister.

He is telling us that previous borrowings have been used to refinance other things.

“We should never forget the challenges Greece is going through…”If we are not careful we shall see exactly what Greece is going,” he cautioned.

The European country has been plunged into a mountain of debts, 180% of GDP IN 2015– the highest in the 19-member eurozone.

The country owes the International Monetary Fund €9.2bn in loan repayments in 2015.

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