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Private sector investment to suffer in 2022 – Ato Forson

Cassiel Ato Forson  Ex-Deputy Minister for Finance, Cassiel Ato Forson

Tue, 4 Jan 2022 Source: www.ghanaweb.com

‘Euro bond market is closed to Ghana for, at least, the first half of 2022’ - MP

Govt borrowing would crowd out private sector investment

Govt removes discount on benchmark values


Ex-Deputy Minister for Finance, Cassiel Ato Forson, has hinted that private sector investment would be hampered in 2022.

He explained that the government will be borrowing heavily from the domestic market since the Euro bond market was closed to Ghana for, at least, the first half of 2022.

Ato Forson who said this on his Facebook page, on January 3, 2022, advised that private businesses should expect an increase in interest rate.

Government borrowing heavily from the domestic financial market would lead to an increase in interest rate.

The increase in interest rate will discourage the private sector from borrowing to either start or expand their business, leading to a decrease in private sector investment.

Ex-Deputy Minister for Finance also said the price of some goods including rice, sugar, pharmaceuticals and cement would increase by 30 percent.

Source: www.ghanaweb.com
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