A member of the NDC communication team , Twum Barimah ESQ points out his disappointment towards the NPP government. He says that IMF would have no respect for Ken Ofori-Atta, someone who disregarded IMF saying they are not an option because we have our own resources later goes back to seek help from them what image is he creating in the sight of IMF ?
“who said e-levy is a solution to our crisis “says Twum Barimah .
He said in an interview that, we are where we are because of the obstinate attitude of government towards advice . The major problem now is rising debt, which stands above 80% of GDP and is projected to reach 104% by the end of 2022. Ghana has been thrust into debt distress as 70% of its total revenue must go towards debt servicing.
He said that in February 2020 before our first Covid-19 case was recorded, World bank said to us that the rate at which Ghana keeps on borrowing, Ghana would become a distress country.
The World Bank has classified Ghana as a high debt distress country as it projects the nation’s debt to Gross Domestic Product (GDP) of 104.6 per cent by the end of 2022.
According to its October 2022 Africa Pulse Report, Ghana’s debt was expected to jump significantly, from 76.6 per cent a year earlier, amid a widened government deficit, massive weakening of the cedi, and rising debt service costs.
It is also forecasting debt to GDP of 99.7 per cent and 101.8 per cent of GDP in 2023 and 2024, respectively.
The size of Ghana’s economy is estimated at about $72 billion, whilst it is expected to spend about 70% of revenue this year to service its debt. But they didn’t listen to advice and now the country has become a distress country but blame it on Covid-19 and Russia Ukraine .
The report is coming at a time the Bank and the International Monetary Fund (IMF) are conducting a Debt Sustainability Analysis on the country. A country which is highly debt distressed is unable to fulfil its financial obligations and therefore debt restructuring is required.
Story by: Osekre Kathlyn / Ahotoronline.com
