Ghana likely to spend GHC23bn more on debts than health and education in 2020 - ENDP

Ghana likely to spend GHC23bn more on debts than health and education in 2020 - ENDP

- The European Network on Debt and Development is convinced that Ghana could spend GHc23 billion more on clearing debts than on infrastructure health and education in 2020

- Records available show that Ghana's interest payments from January to April 2020 is the highest since 2016

- The IIF has also predicted that sub-Saharan Africa’s external debt-service bill could reach $36.6 billion in 2020

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The European Network on Debt and Development has predicted that in 2020, Ghana could spend GHc23 billion more on clearing debts than on infrastructure health and education.

Details also show that the country’s interest payments from January to April 2020 is the highest since 2016 at least.

It is also likely that together with interest payments of other countries, sub-Saharan Africa’s external debt-service bill could reach $36.6 billion in 2020, the Institute of International Finance has argued.

READ ALSO: GHc1 billion: Over 170,000 businesses have so far applied for support - NBSSI

Liberia’s former minister of public works and senior fellow at the Center for Global Development, Gyude Moore, explained that “the cost of servicing the debt and the debt overhang will make recovery difficult.”

Several countries spending more to tackle the pandemic, that epidemiologists say is yet to peak in Africa, may be forced into default, classfmonline.com reports.

Low oil prices could lead to the use of 96% of the Nigerian government’s income, as it is the continent’s top crude producer.

The International Monetary Fund (IMF) has also predicted that interest payments for Angola, the number two oil producer, could eat up all its revenue in 2020.

In other news, the Ghana Statistical Service (GSS) has revealed that inflation for locally-produced goods has surged to 14.1% in May 2020.

YEN.com.gh understands that this is the highest level it has reached since the rebasing of the calculation for Ghana’s inflation in August 2019.

The GSS noted that this was the result of a fall in imports since March 2019, when the government banned international travel in a bid to contain the spread of COVID-19.

READ ALSO: Africa Facts Zone lists the 8 biggest African economies

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