Former Deputy Minister for Finance and Ranking Member on the Finance Committee of Parliament, Dr Cassiel Ato Forson, has disclosed that Ghana has lost market access due to its huge public debt.
According to him, from now until June next year, the government cannot enter the Eurobond Market to source any more loans.
He stated that a report by the IMF on Ghana indicates the country is at a high risk of external debt distress and also at a high risk of overall distress.
Contributing to a debate on the Annual Public Debt Report for the 2020 Financial Year, Dr. Ato Forson noted that because of its debt, Ghana has now lost market access until at least next year.
“We cannot go to the euro bond market. I’m not the one saying it, this is the Fitch Report and if you like I can read it to you,” he stated.
Dr Ato Forson noted that Ghana’s public debt as a percentage of Gross Domestic Product (GDP) is projected to hit a record 90% by the year 2024.
According to him, a report by the International Monetary Fund (IMF) indicates that the GDP as of December last year was 78% and projected to increase to 83% by the end of 2021.
The numbers, he said, will experience further increases through 2022 and 2023 and reach a record 90% by the end of the term of the Akufo-Addo administration.
According to him, between 2019 and 2020 the NPP administration increased Ghana’s public debt by a whopping GH¢73 billion and warned the country is in a very difficult situation because the debt levels have become unsustainable.
“If you are to look at Africa, Ghana is an outlier in terms of debt statistics. If you want to compare the emerging markets, Ghana is an outlier in terms of debt statistics because we have breached all the debt indices,” he added.
Ghanaians, he warned, should be concerned because the situation could have dire consequences and derail all the economic gains achieved by the country over the years.
He said Ghanaians should not concentrate on only the debt numbers but also interrogate whether Ghana is in a position to repay her debts.
Dr. Ato Forson noted that expectation is therefore high on the 2021 budget stressing that the Ghanaian people are not the only ones expecting a positive budget but the international community and investors out there are worried.
“So we expect the government to come and signal positively because this budget is a do or die budget for Ghana,” he added.
