ADVERTISEMENT

Ghana pays more on interests than total oil revenue for 2014

According to him, interest payment on Ghana’s debt stock in 2014 was four times Ghana’s oil revenue for that year.

___4793944___https:______static.pulse.com.gh___webservice___escenic___binary___4793944___2016___3___12___13___kyei

According to him, interest payment on Ghana’s debt stock in 2014 was four times Ghana’s oil revenue for that year.He warned government that the country faces massive debt unsustainability if nothing is done to reduce the  country's debt to GDP ratio of 70%

“This is exceedingly worrying as it is tipping the country into the league of nations with a high risk of debt distress,"Osei Kyei Mensah- Bonsu said.

According to Mensah-Bonsu, the consequence of this characterization is that it will compromise Ghana’s ability to raise further financing from the international finance market.

ADVERTISEMENT

Worse still, he said this will disable the country from servicing and paying its debt.

"In 2015, interest payment amounted to more than ¢9.5 billion, which was more than the debt stock in 2008 towards the end of Kufour’s term for which debt stock for which both the late President Mills and President John Mahama lampooned the NPP administration," he said.

Mensah-Bonsu said this year’s interest payment will amount to ¢10.5 billion, about 24 percent of Ghana’s GDP which will go into debt servicing.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.com.gh

ADVERTISEMENT