We are highly indebted, high risk debt stressed country – Minority fears

The Minority in Parliament is alarmed that Ghana’s debt stock will hit over Gh₵100billion and cross the 70% debt-to-GDP ratio that experts say signals economic doom.

Minority spokesperson on Finance Dr. Akoto Osei says government has tabled three loan agreements – $150million from the World Bank, 57million from AfDB and 17.3 million Euros from Germany. Ghana is also expected to raise $1.5billion on the bond market.

“If you borrow more there are consequences. It is as simple as that,” Dr. Akoto Osei stated.

His remarks follow a supplementary budget reading by the Finance Minister Seth Terpker. While asking for about Gh₵800million more, the minister revealed that significant economic predictions have been reviewed.

Inflation target of 11.5 is no longer possible. It will hit 13.7%, he noted. A predicted 3.9% economic growth has faltered to 3.5% while a deficit of 6.5% of GDP is no longer attainable.

The new target is 7.3%, the minister told Parliament Tuesday.

More soon.
Story by Ghana|Myjoyonline|Edwin Appiah|[email protected]

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