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Ghana needs a miraculous fighting chance to avoid defaulting on external debt – Adongo

Isaac Adongo121212 Deputy Ranking Member of Parliament's Finance Committee, Isaac Adongo

Tue, 7 Jun 2022 Source: www.ghanaweb.com

Public debt stock shoots up by GH¢40.1 billion by end of March 2022

CFR Sovereign Risk Tracker categorises Ghana in higher risk of debt distress

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The Deputy Ranking Member of Parliament’s Finance Committee, Isaac Adongo has expressed concern over Ghana’s ability to pay off its external debt and generate domestic revenue.

This comes after Ghana has been categorised as having a higher chance of defaulting on its external debt in the next five years, according to the CFR Sovereign Risk Tracker.

Results from the tracker showed Ghana scored a mark of 10, indicating that the country has a 50 percent or higher chance of defaulting on its external debt in the next five years.

Reacting to the development in a Facebook post sighted by GhanaWeb, the Bolga Central lawmaker opined that the nation will need a miraculous fighting chance to avoid defaulting on the debt payments.

“Ghana is in dire need of credible leadership devoid of arrogance in the face of badly sinking ship. Ghana's default outlook is scary and already rated by the CFR sovereign risk tracker amongst the top 10 worse-performing countries in the world, some of whom are already defaulting nations with Sri Lanka, our newfound peer facing Ghana's historic economic meltdown between 1979 and 1983 scenario.”

He said the country will only have between July and September this year to give itself a chance in taking raft measures aimed at generating revenue and shore up its international reserves.

“Between July -September 2022, Ghana needs a miraculous fighting chance to avoid default in paying our offshore interest liability if we still can't borrow large sums of forex loans in the face of the twin challenge of low revenue performance and record low international reserves to fund these offshore obligations.”

Touching on measures Ghana can adopt to avoid being ranked as a debt distress status, Isaac Adongo said the only way out is for the country to initiate steps to engage investors and creditors for debt and interest payments restructuring.

“To achieve this in the face of our badly damaged credibility and lack of workable strategy will be a daunting task. The consequences of default will hurt and haunt the economy for decades after these clueless managers like Dr Mahamudu Bawumia are dead and have become historic dishonorable ancestors.

To pull this off, Ghana requires a strong hand in the room with a dreaded cane who these investors trust to engage,” he added.

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Source: www.ghanaweb.com
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