NPP Vice-Presidential candidate, Mahamadu Bawumia has stated that Ghana is no longer described as a Highly Indebted Poor Country (HIPC), rather we are now a Highly Indebted Middle-Income Country (HIMIC) because of the NDC’s recklessness, incompetence and sanctioned corruption.
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Ghana Has Moved From HIPC To HIMIC - Bawumia Tells NDC
Dr Mahamudu Bawumia has described Ghana as a HIMIC country due to the reckless management of the economy.
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Dr Bawumia said the most significant reason Ghana resorted to the International Monetary Fund (IMF) for a bailout is because of unsustained borrowing and debt stock.
According to Dr Mahamadu Bawumia however, at 67% of GDP, Ghana’s debt stock has crossed the critical 60% of GDP level that developing countries with limited access to capital flows should worry about in terms of debt sustainability.
He said Ghana also received $4.2bn in debt-relief after completing the unpopular Highly Indebted Poor Countries (HIPC) programme.
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With the discovery of oil in 2007, there was international confidence that Ghana was ready to take off, he added.
“One can only shudder to think what “not so smart borrowing” would look like. The Minister of Finance has also recently stated that the increase in the debt stock “is not our fault”. Really? When it was this same government that responded to warnings on the rate of borrowing by saying it had the capacity to borrow and would continue borrowing? How then can it not be their fault? Who increased the debt stock by GHC66.6 billion in six years? Is it the fault of some dwarfs? Who did the “smart borrowing?” he asked.
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