Ghana back to HIPC under Akufo-Addo, Ofori-Atta – Mahama

Ghana is back to being a Highly Indebted Poor Country (HIPC) under President Akufo-Addo administration flagbearer of the main opposition National Democratic Congress (NDC) John Dramani Mahama has said.

According to Mr Mahama, the International Monetary Fund (IMF) forecast Ghana’s current rate of borrowing and debt at 76.7 percent debt to GDP ratio.

This, according to Mr Mahama, has brought the nation back to the days of HIPC.

Speaking at the La Palm Royal Beach Hotel on Monday, 26 October 2020 where he engaged professionals ahead of the December 7 polls, Mr Mahama noted that it is incorrect that he left President Akufo-Addo with nothing.

“Contrary to the impression created by Nana Addo Dankwa Akufo-Addo that he inherited nothing from me and that he inherited a mess, I left him revenue from two new oil fields - the TEN field and ENI Sankofa fields.

“I left him with $270 million in the Ghana Infrastructure Investment Fund. I left him with more than $207 million in the Stabilisation Fund and about $300 million in the Sinking Fund with which the final payment of the Kufuor euro bond was paid on maturity in 2017,” Mr Mahama said.

He continued that: “As for the 2020 growth, the economy that was sold to us as resilient and capable of withstanding shocks for at least three months without any external intervention could not stay afloat without IMF support for more than three weeks.

“Even worse, the rate of borrowing by this government has dazed many observers.

“The IMF in its Sub-Saharan African Regional Economic Outlook forecast the current rate of borrowing and debt at a frightening 76.7% debt to GDP ratio.

“Ladies and gentlemen, unfortunately, Ghana is back to HIPC status under Nana Akufo-Addo and Ken Ofori-Atta administration.”

HIPC is a group of developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the IMF and the World Bank.

It provides debt relief and low-interest loans to cancel or reduce external debt repayments to sustainable levels.

Ghana completed the programme and had her external debt cancelled and no longer qualifies to be part of HIPC.