The Minority in Parliament is alarmed that Ghana’s debt stock will hit over Ghâ‚µ100billion 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 Ghâ‚µ800million 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.
Story by Ghana|Myjoyonline|Edwin Appiah|[email protected]
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