Saaka Salia, member of the New Patriotic Party communications team has debunked claims that Ghana has once again been ranked in the category of Highly Indebted Poor Countries (HIPC).
He noted that because the country is approaching a general election in December, there is a deliberate attempt by the NDC to discredit the work government has done since assuming office in 2017 to revive the economy.
Speaking on Happy FM’s Epa Hoa Daben show with Kwame Afrifa-Mensah, Saaka Salia said “Ghana is not closer to HIPC, What we have borrowed, we have used it judiciously, we are not just borrowing to enrich ourselves, we are unalike the NDC.
Mr Salia justified what the government has so far borrowed “Have you wondered why ‘Dumsor’ has become a thing of the past? This is because we have been able to buy more crude oil with our borrowing. During this era of COVID-19, the government is giving free water and electricity. Where do we get money to pay NABCo trainees? How do we pay for youth afforestation and planting for foods and jobs which have created over 700000 jobs? Has the NDC asked themselves where we get the money from to embark on all these good projects?
Ghana’s total public debt stock jumped by 1.66 percent to hit GHS263. 1 billion [$46.3bn] in July 2020, according to the latest Summary of Macroeconomic and Financial Data.
John Mahama, during a speech at a Professionals Dialogue series in Accra on Monday, said the International Monetary Fund (IMF) forecasts Ghana’s current rate of borrowing and debt at 76.7% debt to GDP ratio and thus had relapsed the country into a Highly Indebted Poor Country (HIPC) status.
This, he said, is due to what he believes is economic mismanagement by the governing NPP.
The HIPC was a group of 39 developing countries with high levels of poverty and debt overhang which qualified for financial assistance from the World Bank, the International Monetary Fund and other multilateral, bilateral and commercial creditors between 1996 and 2001.
It was designed to ensure the reduction in the debt levels of poor and indebted countries
Meanwhile, the IMF has also explained that Ghana has not been re-admitted into the HIPC Initiative which it exited about 16 years ago. Consequently, the IMF has stated that a recent update of Ghana’s debt-to-GDP ratio has not triggered any decision or action by the IMF.
