Ghana is 'far worse' now than in HIPC times - Kwesi Pratt cries out

Seasoned journalist Kwesi Pratt Jnr. says Ghana's economy under the Akufo-Addo administration is far worse than when the country was declared a member of the Highly Indebted Poor Countries (HIPC).

Ghana went under the HIPC programme in 2002 to reduce the country's debt and enhance its development.

In February 2002, the International Monetary Fund (IMF) and the International Development Association (IDA) agreed to support a comprehensive debt reduction package for Ghana under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative, according to a report by the World Bank.

Addressing the current economic situation of Ghana while discussing the mid-year budget statement by the Finance minister on Tuesday, July 23, Kwesi Pratt exclaimed, "We have gone into HIPC before. We were declared HIPC around 2001 and 2002... but the situation now is worse than 2001."

He further argued, "In 2001, when we went into HIPC, at that time, our main concern was that we were spending two-thirds of total export revenue on debt servicing and debt repayment. Look at the situation today, far worse!"

Mr. Pratt added that the debt forgiveness to Ghana as part of measures to boost the economy has had little positive impact.

Ghana’s Eurobond holders, in June this year, forgave the nation of $4.7 billion of the debt owed them with the aim of helping the country to return to its feet.

But for Kwesi Pratt Jnr., the government shouldn't pride itself on securing this respite, stressing on Peace FM's "Kokrokoo" discussion show that "debt forgiveness is not a solution to the fundamental problems of the economy. It is not, can never be, has never been!"