How does government intend to reduce debt levels from 105% to 55% by 2028? - Ato Forson asks

A ranking member on parliament’s finance committee, Cassiel Ato Forson, has asked President Nana Addo Dankwa Akufo-Addo to present to Ghana how his government intends to reduce the country’s high debt levels by 2028. According to him, the President must state categorically, what measures he intends to adopt in the coming years. “How will you be able to bring down the public debt from the UNSUSTAINABLE level of 105% of GDP to 55% of GDP by 2028?” he wrote on Twitter on October 31, 2022. The World Bank said in its latest report that Ghana’s debt currently stands at 105% of GDP. In this light, Ato Forson earlier hinted that per the country’s current debt levels debt restructuring will be the best option for the government. But the President refuted claims of a possible debt restructuring programme adding that investors should eschew fear and panic. He said that “no individual or institutional investors, including pension funds, in Government treasury bills or instruments, will lose their money, as a result of our ongoing IMF negotiations. There will be no “haircuts”, so I urge all of you to ignore the false rumors, just as, in the banking sector clean-up, Government ensured that the 4.6 million depositors affected by the exercise did not lose their deposits.” Ato Forson said: “At least tell us how you will do this without a haircut on the interest or principal of the domestic and foreign debt,” he said. “Investors will like to know!” Ato Forson concluded. Watch the latest episode of BizTech below: SSD/FNOQ

A ranking member on parliament’s finance committee, Cassiel Ato Forson, has asked President Nana Addo Dankwa Akufo-Addo to present to Ghana how his government intends to reduce the country’s high debt levels by 2028. According to him, the President must state categorically, what measures he intends to adopt in the coming years. “How will you be able to bring down the public debt from the UNSUSTAINABLE level of 105% of GDP to 55% of GDP by 2028?” he wrote on Twitter on October 31, 2022. The World Bank said in its latest report that Ghana’s debt currently stands at 105% of GDP. In this light, Ato Forson earlier hinted that per the country’s current debt levels debt restructuring will be the best option for the government. But the President refuted claims of a possible debt restructuring programme adding that investors should eschew fear and panic. He said that “no individual or institutional investors, including pension funds, in Government treasury bills or instruments, will lose their money, as a result of our ongoing IMF negotiations. There will be no “haircuts”, so I urge all of you to ignore the false rumors, just as, in the banking sector clean-up, Government ensured that the 4.6 million depositors affected by the exercise did not lose their deposits.” Ato Forson said: “At least tell us how you will do this without a haircut on the interest or principal of the domestic and foreign debt,” he said. “Investors will like to know!” Ato Forson concluded. Watch the latest episode of BizTech below: SSD/FNOQ