By: Kenneth Appiah Bani.
President John Dramani Mahama says Ghana has made major progress in reducing its national debt, cutting it down by almost GH¢150 billion in just five months.
He made this known during a panel discussion at the 60th Annual General Meeting of the African Development Bank in Abidjan, Ivory Coast. According to him, the government’s efforts to manage the country’s high debt levels are starting to show clear results, and the Ghana cedi is also gaining strength.
“And so, if that trajectory continues, the target of reaching 55 to 58 per cent debt sustainability by 2028 will be reached by the end of this year,” President Mahama said.
He added that this improvement in the debt situation is giving the government more space in the national budget to invest in important sectors of the economy.
President Mahama explained that his administration is implementing a tough debt exchange programme aimed at restructuring the country’s loans and reducing the debt-to-GDP ratio to between 55 and 58 per cent by 2028.
He said Ghana completed debt restructuring talks with its bilateral creditors earlier this year, which helped bring down the total debt and spread out the repayment period. This has lowered the debt-to-GDP ratio to about 75 or 76 per cent.
“Since then, we’re left with just three per cent of the debt. We’ve covered 97 per cent,” he said.
President Mahama also stressed the importance of responsible borrowing.
“You must do smart borrowing, taking debts where you can create debt escrows so that the income for which you invested the credit can go to repay,” he added.
Video credit: woezor tv.
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