Ghana has to be careful of excessive borrowing - World Bank warns
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Ghana has to be careful of excessive borrowing - World Bank warns

- Country Director of World Bank, Pierre Frank Laporte has expressed worry at the rate at which the Government of Ghana is borrowing

- According to him, the country risks being classified as a high debt distress country if the situation persists

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Country Director of World Bank, Pierre Frank Laporte has expressed worry at the rate at which the government of Ghana is borrowing to stay afloat.

He said the country risks being classified as a high debt distress country if the situation of excessive borrowing is not curbed.

His genuine concern comes a day after the government successfully raised US$3 billion Eurobond which was five times oversubscribed.

Speaking to the media after a courtesy call on the Speaker of Parliament, he said the government must be cautious of the amount of being borrowed.

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“Countries especially developing countries have to borrow because most of us do not have adequate resources, we have to borrow to develop but we have to borrow responsibly.
At the moment, Ghana’s debt situation according to World Bank description is a country at moderate rate to high risk of debt distress; of course, yes the country has to be careful”, said Mr. Laporte.

The International Monetary Fund (IMF) has also warned the nation that it is at a high risk of becoming a debt-distressed country.

According to the Fund, the Debt Sustainability Analysis is mainly driven by debt service to revenue exceeding the threshold throughout the forecast horizon, though all other indicators also exceed their threshold at some point over the horizon.

Concerns have also been raised regarding the borrowed funds being used mainly for consumption rather than capital projects or investments.

READ ALSO: Coronavirus won’t survive in Ghana and Africa - Korle Bu CEO

In other news, the Greater Accra Regional Hospital, popularly known as the Ridge Hospital, has disclosed that an emergency response team consisting of 9 doctors and 26 nurses have been put on standby to tackle the deadly coronavirus.

Medical Director at the hospital, Dr Emmanuel Srofenyo, said the hospital is ready to handle any coronavirus case brought before it.

He made this known yesterday, February 6, 2020, while taking some media men around the facility designated to handle such cases in case of any eventuality.

READ ALSO: Coronavirus: 9 doctors, 26 nurses boldly dedicated to fight the virus at Ridge Hospital

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Source: Yen

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