Business News of Saturday, 17 November 2018
Ghana’s debt stock is likely to hit GH¢200 billion by the year 2020, a former Deputy Finance Minister, Kweku Ricketts–Hagan has predicted.
Ricketts-Hagan says government’s insatiable appetite for more credit is problematic, especially after it condemned the then NDC government of doing same and promised of guarding against such trend.
“It is worth noting that within just 22 months in power, the NPP government has borrowed an additional GH¢50 billion from the 122.3 billion they inherited from the Mahama government and pushed up the total debt to (GH¢170.8 billion) in 2018. What have they done with that money? Nobody can give us an answer.
the rate at which they are borrowing is worrying.” he told sit-in host Akwasi Nsiah on Anopa Kasapa on Kasapa 102.5 FM Friday.
He adds:”There’s nothing good that will change anybody’s life in that Budget. what they said they’ll do in the 2018 Budget, they’re still going to do them in 2019 Budget.”
Ghana’s debt stock has increased from $28.9 billion (GH¢142 billion) in 2017 to $34.6 billion (GH¢170.8 billion) in 2018.
The latest figure, according to Ghana’s Finance Minister Ken Ofori Atta represents 70 percent of the Country’s Gross Domestic Product (GDP).
Ofori Atta made this known on Thursday during his presentation of the government’s 2019 budget statement and economic policy in Parliament in Accra.
The $34.6 billion figure includes both external and domestic debts of $17.5 billion (GH¢86.6 billion) and $17.1 billion (GH¢84.1 billion) respectively.
The overall rate of debt accumulation in 2018 is 19.8 percent. The minister said that was driven primarily by the cost of the clean-up of the financial sector.