The 2012 Vice Presidential Candidate for the New Patriotic Party (NPP), Dr. Mahamadu Bawumia has said that Ghana is heading back to the unsustainable debt regime that eventually forced the country to become a Highly Indebted Poor Country (HIPC).
He however stated that “the difference this time is that the HIPC debt relief will not be available in this era gain”
Speaking at a public lecture on the theme “Restoring the value of the cedi”, he stated that the increase in government debt over the last five years has placed a major burden on the public finance with regards to interest payments.
According to him, there has been a dramatic increase in central bank financing of government projects.
“Central bank financing has increased from 1.4 billion in 2008 to 11.3 billion by the end of 2013,”he emphasized.
Dr. Bawumia also noted that the current depreciation of the Cedi “is increasing the cost of living in the country.”
According to him payment of contractors undertaking governmental projects are also in arrears.
Commenting on the continuous decline of the GDP growth in Ghana he stated that “in terms of quarterly GDP growth we have grown from unprecedented rates ranging from 14.4 in 2011 to zero by the.”
Government has put on hold its plan to raise $1 billion from investors outside the country.
Government had intended to issue the bonds by next month but managers of the economy have described as unfavourable market conditions hence the decision.
By: Marian Efe Ansah/citifmonline.com/Ghana