‘Economic crisis is looming by 2023’, go for IMF debt relief- NDC MPs to Akufo-Addo

Minority Caucus of Parliament has predicted that Ghana will suffer from deep economic crisis by February 2023, 18 months from if urged steps are not taken and has thrown an open invitation to President Akufo-Addo to immediately run for debts reliefs from International Monetary Fund (IMF) to revive the Ghanaian economy.

Economic and Financial data released by Bank of Ghana puts Ghana’s total debt stock of March 2021 at 304.6 billion Cedis equivalent to $57.9 billion attributed to huge borrowing from the domestic market.

In April 2021, the debt stock stood at 328 billion Cedis which implies that a significant jump of 23.4 billion debt was added between March and April forcing government to slow down borrowing.

In view of the above astronomical figures, the NDC Minority says government needs IMF bailout to be on its feet.

According to Former Finance Minister and Minority Spokesperson on Finance Dr. Cassiel Ato Forson, Ghana will in the coming 18 months will not be attractive to the bonds market which is not good for Ghana.

Speaking at Policy Dialogue on Economy on Monday 26 July 2021 in Accra, former Deputy Finance Minister Dr. Cassiel Ato Forson said “Akufo-Addo Bawumia government must seek debts relief. Without this, the debts servicing will hit 85% from the current 73% of GDP and in 18 months which is by February 2023 the economy will cripple. Let’s wait and see. Debt sustainability will become a problem “.

Dr. Forson noted that “If Ghana crashes, we’ll crash and we demand that in the mid-year-review, the Finance Minister must announce convincing measures to fix the economy”.

Ghana’s debt Stock: Let’s set benchmark for gov’t- Dr. Forson

Former Deputy Finance Minister and Minority Spokesperson on Finance Dr. Cassiel Ato Forson says the time has come for parliament to immediately set benchmark for Akufo-Addo-Bawumia-led Administration to limit their unwavering penchant for excessive borrowing to escape the national economy total collapse.

Economic and Financial data released by Bank of Ghana puts Ghana’s total debt stock of March 2021 at 304.6 billion Cedis equivalent to $57.9 billion attributed to huge borrowing from the domestic market.

In April 2021, the debt stock stood at 328 billion Cedis which implies that a significant jump of 23.4 billion debt was added between March and April forcing government to slow down borrowing.

According to him, Ghana stands out as having the highest costs of borrowing within the African Region.

Apart from that, Ghana remains the most exposed interest rate risk country and GHC 8.2 billion are in arrears to contractors and others.

Speaking at Policy Dialogue on Economy in Accra, the former Deputy Finance Minister Dr. Forson said “We must set benchmark for Akufo-Addo-Bawumia government because they will crash Ghana and crash us with excessive borrowing “.

Source: africaneditors.com