Akufo-Addo Declares Plan To Return To International Market To Borrow: "It's Been A Great Source Of Funding"
- Nana Akufo-Addo has said Ghana is willing to return to the international market to borrow to build the infrastructure of the country
- According to him, it is advantageous to borrow from the international market because there are "global savings"
- The president made the comment when he spoke with Bloomberg TV's Jennifer Zabasajja, on the sidelines of the Qatar-Africa Economic Forum in Doha on Wednesday, May 24, 2023
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President Nana Akufo-Addo has said Ghana has positioned itself in a way that enables the country to return to the international market to borrow for infrastructural projects.
He said during an interview with Bloomberg TV's Jennifer Zabasajja, on the sidelines of the Qatar-Africa Economic Forum in Doha that Ghana is not in a rush to return to the international market, but that source of funding appeals to him.
“There is no rush but obviously why not take advantage of global savings, it makes a lot of sense to me. We will try as much as possible to maintain the discipline which is required and the most important requisite for a successful programme,” Nana Akufo-Addo said on Wednesday, May 24, 2023.
Ghana lost out on the international financial market after a debt distress situation pushed the country out of the space.
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However, with the IMF programme secured, confidence is building in the economy and the international financial market could reopen to the country.
IMF bailout will help improve Ghana's economic conditions
He told participants of the forum in Doha that the $3 billion IMF bailout can help return the country's economy to winning ways.
He said rationalisation of government expenditure and improved domestic revenue mobilisation remains a top priority in efforts to ensure the bailout programme is successful.
“We have a fiscal responsibility law in Ghana that has pegged our fiscal deficit at 5% but already we are way above that and the sooner we can bring that to more acceptable levels the better for us," he said.
China to take over Ghana’s mineral revenue and power sales in default of 4 loans
Meanwhile, YEN.com.gh has reported in a related story about Ghana's debt that a report by the IMF on Ghana's external debts shows that should Ghana fail to honour obligations under the loan agreement with China, it could lose revenue from its mineral resource and electricity sales.
Details of Ghana's collateralised loans from China show that the Asian country could have the right to use proceeds from Ghana’s oil, cocoa, bauxite or even the sales from electricity to settle the debt.
China owns about two-thirds of all of Ghana's external loans, making the Asian superpower an important party in discussions about Ghana's loans.
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