President Akufo-Addo’s GHS35million daily borrowing takes Ghana back into HIPC
The International Monetary Fund is forecasting a worrying 76.7% of debt-to-Gross Domestic Product ratio for Ghana in 2020 according to its Economic outlook report on Sub Saharan released last week.
The report puts Ghana in the high risk of debt distress category and confirms Ghana as one of the Highly Indebted Poor Countries (HIPC).
According to IMF, the rising debt posses a threat to both the fiscal and monetary economy particularly revenue mobilization, exchange rate and inflation.
The nation’s debt-to-GDP ratio has been growing sharply, from 44% in 2016 to 58.3% in 2017and subsequently to 59.1% in 2018. In 2019, the nation’s debt stood at 62.8% of GDP, about GHS217.9 billion. Ghana’s debt stood at GHS263 billion in July 2020 and projected to hit GHS285billion by the end of October 2020 which will mean the government borrowed over GHS160billion in less than 4years.
In considering the fact that President Akufo-Addo was given a 48months (1,456 days) mandate as president, the data and the records shows Nana Akufo-Addo and Dr Bawumia led government borrowed and a whooping GHS1.5million every single hour they have been in government. By the time one finish reading this news item, GHS100,000 would been added to Ghana’s debt stock.
The Data and record shows that Ghana is borrowing on average GHS25,000 every single minute. That translates into GHS1.5million every single hour, which is about GHS35 million every single day. This will total about GHS111million every single month resulting in a debt legacy of GHS160billion under Nana Akufo-Addo’s lead 46months government.