Ghana's Public Debt To GDP Is About 100%; It Is Simply Unsustainable – Ato Forson Sounds The Alarm Bells

Ghana's Public Debt To GDP Is About 100%; It Is Simply Unsustainable – Ato Forson Sounds The Alarm Bells

  • The Member of Parliament for the Ajumako-Enyan-Essiam constituency in the Central Region, Dr Ato Forson, has disclosed Ghana's current public debt to GDP
  • He says the figure is hovering around 100%, which makes it simply unsustainable and scary for the country's economic outlook
  • He also adds that the country's current debt status cannot lead to restructuring, particularly when the government is seeking an IMF bailout

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The Ranking Member of Parliament's Finance Committee, Dr Cassiel Ato Forson, has sounded the alarm bells on the country's debt to GDP ratio.

According to him, Ghana's public debt is about 100% of GDP, which makes it highly unsustainable and scary.

Dr Cassiel Ato Forson says Ghana's public debt to GDP is about 100% which is unsustainable
L-R: Dr Cassiel Ato Forson and Finance Minister, Ken Ofori-Atta Image Credit: @atoforson
Source: Getty Images

Sounding the alarm bells in a Twitter post on Monday, September 26, 2022, the Ajumako-Enyan-Essiam MP said the country's debt situation is simply unsustainable, making debt restructuring unavoidable.

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"After calling the Minority names because I insisted they add ESLA and GETFund bonds plus cocoa bills and sinohydro to the public debt, government has finally agreed as part of the IMF negotaitions to add all of them! Our public debt to GDP is now about 100%."

Ghana's Current Debt Status Will Make It Difficult For The Country To Avoid A Restructuring - Dr Ato Forson

In a follow-up interview on Accra-based Joy FM, the Minority spokesperson on Finance said it will be tough for the country to avoid a restructuring due to its current debt status, particularly when the government has returned to the International Monetary Fund (IMF) for a bailout.

He said the debt restructuring situation would lead to dire consequences for the economy as the country has never experienced any debt restructuring before.

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He also expressed worry over the country's lack of expertise in successfully navigating a debt restructuring.

IMF Programme Will Focus Heavily On Ghana's Debt Sustainability

The concerns of Dr Ato Forson follow a Question and Answer statement issued by the Bretton Woods Institution ahead of its deliberations with the Akufo-Addo-led government on an Economic Programme aimed at stabilising Ghana's ailing economy, which is reeling under high inflation, cedi dollar depreciation, among others.

The IMF also added that the programme with Ghana would focus heavily on debt sustainability, support the credibility of government policies, restore confidence in the ability of the Bank of Ghana to manage inflation and accumulate foreign exchange reserves to strengthen the cedi.

Akufo-Addo's Mismanagement Of Ghanaian Economy Will Take 20 Years To Repair – Dr Ato Forson

Earlier, reported that Dr Ato Forson had predicted that the mismanagement of the Ghanaian economy by the Akufo-Addo-led government will take some 20 years to be fixed.

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According to him, had officials of the governing party listened to his wise counsel for an urgent bailout from the IMF, the situation would have been better.

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