Debt-restructuring will damage Ghana’s reputation -Dr. Forson

Former Deputy Finance Minister Cassiel Ato Forson has warned that debt-restructuring will cause pension funds, banks, insurance, savings and loan companies to suffer. Speaking on the state of the economy, Dr. Ato Forson said Ghana is bound to suffer reputational damage if it restructures debts.

According to Former Deputy Finance Minister Dr. Cassiel Ato Forson, Ghana is in a debt mess because the book runners of the economy failed to act. Apart from that he says Ghana is the first Sub Saharan African country to restructure commercial debts with huge reputational damage.

Speaking on the state of the economy, the Minority Spokesperson on Finance Ato Forson said rating agencies will downgrade Ghana to D.

“Rating agencies will downgrade Ghana to D. Ghana is in debt mess because the managers of the economy failed to act. For them, everything is about the next elections, they never accept responsibility. The always say it was the guy behind the tree”, Dr. Ato Forson noted.

Dr. Forson has also warned that debtstructuring will drop pension funds. Savings and Loans, insurance, state pensions will suffer.

Recommending policy options, Dr. Ato Forson also wants Bank of Ghana to curb the high rate of inflation and stop printing money.

According to him, “Ghana is the first Sub Saharan African country to restructure its commercial debt with huge reputational damage. We recommend set of policy options including Bank of Ghana must curb inflation. The Bank of Ghana must confront inflation now and stop printing money”.

Speaking at a lecture on the economy in Accra, Dr. Cassiel Ato Forson left Ghana’s economic hardships and problems on the doorstep of Vice President Dr. Mahamudu Bawumia and Bank of Ghana.