Ghana is yet to be declared a Highly Indebted Poor Country, HIPC according to facts gathered from pertinent information source and Bank of Ghana (BoG). According to the facts gathered, the country’s debt has sharply risen over the years and shows no signs of stabilizing.
The facts gathered show that the country’s public debt has over the years increased to 94.6 billion Ghana cedis equivalent to 71% of the country’s Gross Domestic Product (GDP). Figures digged from the bank of Ghana (BoG) indicate that the country’s external dept as at January was about 44,869.2 and 58,676.2 as in July, a situation that continues to see sharp rises.
In an interview with a business consultant as well as the former District Chief Executive (DCE) for the Yilo Krobo District Assembly, MR. Christian Kofi Tettey said, the cause of the HIPC mostly lies primarily on the debt stock of the country. He said looking at the current state of the country; government is not able to pay public debt in time.
This has affected the financial position of the country, as well as preventing investors who are ready and willing to invest into the country’s economy not to due to the bad nature of the economy, thereby affecting business transactions in the country.
He lamented that the bad nature of the economy is due to the poor and inefficient management system on the part of the government. He further stated emphatically that, the rate at which government borrows money from World Bank and other countries has restrains the country in a state of HIPC as this continues to affect the country from acquiring grants for domestic business.
He added further that government’s effort to put measures in place such as the introduction of government instruments which include the purchase of fixed deposit, bonds, treasury bills, etc all in an attempt to control the financial status of the country was ineffective.
Source: ritefmonline.org
