Senior Minister, Yaw Osafo Maafo has justified government’s issue of bonds to reshape the country’s debts.
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The NPP government’s bonds issue has been perceived as repeating the exact concern the party raised during the campaign in 2016.
Dr. Mahamudu Bawumia criticized the then ruling party NDC for increasing the debt burden of Ghanaians.
Speaking to Citi Business News on the issue, Mr. Yaw Osafo Maafo said that the move will give government the opportunity to create a much needed fiscal space for development.
“So far, this government has not been involved in borrowing; rather what it has been involved heavily in is debt re-profiling meaning that you are looking at your repayment period and you are asking other people to take some part of the debt and give you a longer repayment terms”, he stated.
The Senior Minister continued, “instead of paying something in one year, you get the option to pay within ten years. This helps to get a moratorium to reduce the debt service which is a major toll on the country’s resources and fiscal appearance.”
According to the latest figures from the Bank of Ghana the country’s debt stock as at May 2017 stood at 137.2 billion cedis.
This also represents 67.5% of Ghana’s debt to GDP ratio.
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