NDC's reckless borrowing partly to blame for Ghana's current debt situation - Dr. Frank Bannor

The Head of Research at the policy think tank of Danquah Institute, Dr. Frank Bannor has observed that Ghana’s current debt levels should partly be blamed on the reckless borrowing of the then Mahama administration.

Speaking at ABC News’ Economic Symposium in Winneba, Dr. Frank Bannor stated that power purchasing agreements under John Dramani Mahama were recklessly done as they committed the nation to huge debts.

“Ghana’s debt levels are high now but we can partly blame the reckless borrowing of the Mahama administration. How the power purchasing agreements were conducted affected our debt levels adversely. We are paying far more than we ought to have been paying, and that’s John Mahama for you,” he explained.

He also explained that the phenomenon where foreign companies repatriate monies in dollars to their countries also affects the economy.

Dr. Bannor, who is also a Development Economist, advised that the country must prioritize growing for consumption and export to other countries.

“We have not been producing enough for ourselves and export, and we have been depending so much on foreign products. There is no way we can get out of this situation. We must produce more to balance the situation,” he said.

He also indicated that there is a need for the country to take its industrial development very seriously as that is the only way for the cedi to remain strong against the dollar.

As of the end of June 2024, Ghana's total central government debt was GH¢742.0 billion, which is 70.6% of its GDP. This is a 22% increase from the previous period, due to the depreciation of the Cedi and payments from creditors.

Dr. Frank Bannor urged Ghanaians to vote for Dr. Mahamudu Bawumia whose policies captured in the NPP’s manifesto, have the potential to change the trajectory.