An Economist, Dr. Lord Mensah has advised the government to take precautionary measures aimed at managing the country’s economic debt stock.
He described Ghana’s current increasing debt stock as ‘alarming’ and may plunge the country into no other situation other than a debt-distressed one.
Speaking on Plan B FM ‘Nkosuo Nsem’ with Ohene Addo, he said that successive governments have contributed to the astronomical increase in our debt stock.
“Our appetite for borrowing has brought us where we are now; if you look at our current debt stock and the amount we are paying I will say our economy is gradually grinding to a halt. Since our first Eurobond in 2007, successive governments have gone ahead to borrow more and has matured with accrued interest. That is why we have this debt overhung,” he indicated.
Dr. Lord Mensah therefore, warned that the country risks jeopardizing its economic milestones if stringent steps are not adopted to tackle the ever-rising debt stock.
“As things stand, a prudent economic management will only relief us from this public debt that is staring at our face. If you look at the economic indicators that took us to HIPC, the current happenings is a clear manifestation that the country could go back for external support. If it happens like that, the ordinary citizen will bear the brunt for economic mismanagement,” he remarked.
He continued that Ghana do not seem to have gotten to the optimal level of revenue growth and added that the public debt is very alarming and warned that it the country continue to go at the rate at which she is going, the country is likely to be in the position of a debt-distress country.
Ghana’s debt stock hits GH¢332 billion, debt to GDP now 76.6%
Ghana’s total public debt stock, which ended the first quarter of 2021 at GH¢ 304.6 billion, increased by almost GH¢ 30 nillion in April and May. This saw Ghana’s total public debt as of the end of May 2021 rising to GH¢ 332.4.
The new debt figure brings Ghana’s debt to Gross Domestic Product (GDP) ratio to 76.6% as of the end of May. This is the highest recorded so far in the past year, slightly higher than the debt to GDP ratio of 76.1% recorded at the end of 2020 according to data from the central bank.
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