Ghana has defaulted on its international debt obligations for the first time in history – John Jinapor

Ranking Member of the Energy Committee and spokesperson on the economy for the NDC, John Jinapor, has said that for the first time in history, Ghana has defaulted on its international debt obligations.

According to him, the country has defaulted on both the internal and external sectors to the extent that domestic bonds cannot be serviced.

He added that claims made by the NPP's flagbearer Dr. Mahamudu Bawumia, that he will upgrade the economy cannot be realized.

“For the first time in the history of Ghana, we are defaulting on our international debt obligations. We are so broke that we cannot even service domestic bonds. The external sector is where you see a country’s vulnerability because it cannot be manipulated; as for the internal sector, since the government has authority over its monetary policy, it can usually manage it.

"We have defaulted on both sides; even pensioners had to queue and picket. And you tell us you want to upgrade the economy? This simply means you want to upgrade the suffering,” the lawmaker said on Metro TV's Good Morning Ghana show on August 27, 2024.

In response, Economist Dr. Frank Banor argued that in 2015, Ghana issued Eurobonds with its highest coupon rate ever of 10.75 percent.

“If you are a lover of economics and also a fan of data, then it leaves much room for worry, especially when someone like the former president talks about resetting the Ghanaian economy.

“Between 2013 and 2016, during Mahama’s presidency, Ghana went to the Eurobond market each year. All this borrowing was done in the short term, meaning that Ghana did not have enough fiscal room to operate. The NDC is one major reason Ghana finds itself where we are today,” the economist countered.

NAY/MA

Watch the latest episode of Everyday People on GhanaWeb TV below:

Watch a documentary on Uncle Ebo Whyte below: