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) forecasts 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, monitored by Classfmonline, Mr.
Mahama noted that it is incorrect that he left President Akufo-Addo with
nothing.
“Contrary
to the impression created by Nana Akuffo-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 canceled and no longer
qualifies to be part of HIPC.
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