World Bank describes Ghana’s debt levels as worrying
- The Country Director of Work Bank Pierre Frank LaPorte has stated that Ghana’s rising debt levels places it at pre-HIPC levels
- He opined that the country must work hard and turn its economic fortunes around as soon as possible
- The Bank of Ghana’s latest Summary of Economic and Financial report, revealed that the public debt as at May this year stood at about GHS200 million – translating into about US$38.8 billion
The World Bank Country Director, Pierre Frank LaPorte, has expressed worry over the rising levels of Ghana’s debts.
According to him, if the country’s debt is not immediately checked, Ghana could soon return to HIPC.
He attributed the country’s rising debts to the government’s increased borrowing to pay outstanding debts without reinvesting the monies.
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This, Mr. LaPorte said, is risky, especially for a country like Ghana which is an emerging economy.
He was speaking at the World Bank’s Economic Marathon held in Accra on Thursday, July 25.
“Actually, the World Bank is quite concerned about the recent trend in debt. We see across Africa debt is rising and we may be returning to HIPC levels of debt, where debt was unsustainable. All the gains from the HIPC initiative are being eroded,” he said.
He added: “Borrowing is necessary for development, but we have to consider sustainability. Africa has to be careful and Ghana is no exception. We have to consider domestic and external debt because when the economy is in balance and foreign currency is not an issue.
“A country can repay its external debt but there has to be a balance so not too much of your foreign exchange reserves are being used to service debt,” he said.
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Ghana’s total public debt as at May 2019 stood at about GHc200 million, translating into about $38.8 billion.
This is according to the Bank of Ghana’s latest Summary of Economic and Financial report.
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Source: YEN.com.gh
