Banking expert proposes constitutional amendment to incorporate debt limit

Banking Consultant, Dr. Richmond Atuahene has advocated for a constitutional amendment in order to incorporate a debt limit or a debt cap.

He explained that the move would ensure economic sustainability and manage debt levels to avert a financial crisis particularly in a post-IMF programme.

Touching on Ghana’s unsustainable debt levels which has forced the country to seek a 17th bailout programme from the IMF, the Banking Consultant said the country must adopt stringent measures to rake in domestic revenue while adopting innovative ways to widen the tax net as well as reducing excessive borrowing.

“To prevent future debt crisis, the government and the legislature must ensure that the 1992 Constitution is duly amended and the Debt-to-GDP Ratio is explicitly enshrined,” the Banking Consultant suggested.

He continued, "To build back better post-IMF, the country would require aggressive agricultural development strategies with the private sector, over the medium-term, with view to accelerate the modernization of agriculture and ensure its linkage with industry through the application of science, technology and innovation.”

Meanwhile, the debt ceiling is a limit on the total amount of which government is allowed to borrow.

The 12th edition of the Ghana Economic Forum is on the back of the toughest macroeconomic period in over a decade; Ghana's US$3 billion Extended Credit Facility (ECF) from the International Monetary Fund and the impact of the Domestic Debt Exchange Programme (DDEP).

The theme for this year's forum is; "Build back better: IMF support, strategies to build a sustainable economy and dynamic business environment."

The GEF brought together experts and thought-leaders in the financial sector to discuss crucial topics that shape the country’s economic landscape.



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