Some economists have lauded the government’s commitment not to issue any Eurobond this year.
[contextly_sidebar id=”VA89M48kecuI6fftIUaR7UJlAsjp2hRm”]They explain that the development should give room to deal with the country’s ballooning debts.
The Vice President, Dr. Mahamudu Bawumia has refuted assertions that the recent non-deal road show embarked on by a team of government officials is likely to culminate in the issuing of a Eurobond.
He insists the move is rather to attract Foreign Direct Investments (FDIs) into Ghana and not to issue Eurobond.
Economist Dr. Lord Mensah, explains to Citi Business News government’s plan should be achieved with recent economic developments.
“They have been able to hit on the same investors who are likely to invest in the Eurobond. Since you can invest in the Eurobond, why don’t you equally invest into the economy in the form of FDIs. Possibly we can have an advantage rather than going to borrow and pay interests,” he stated.
Dr. Mensah added, “This is not the government being inactive but it serves as a means of helping the private sector.”
The NPP government is faced with the challenge of reducing Ghana’s debt levels as it has greatly impacted on other sectors of the economy.
At present, the debt stands at 74 percent of GDP.
Some interventions have been the issuing of domestic bonds to raise about 2.25 billion dollars to re-profile the debts.
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana