New Patriotic Party\u2019s (NPP) Vice Presidential candidate Dr Mahamudu Bawumia has said investors are fast losing confidence in Ghana\u2019s economy.<\/p>\n
This he said is because of government\u2019s inability to pay its foreign debts, adding that it is adversely affecting the country.<\/p>\n
Speaking at a fund raising program in London, Dr Mahamudu Bawumia \u00a0said this spells doom for the country\u2019s economic growth as the public debt increases to close to 70% of the nation\u2019s GDP.<\/p>\n
[contextly_sidebar id=”1wQpg4si75D27K5y4gKMSt1XLQF7Kut3″]\u201cGhana appears to be having problems servicing her debts and this is making investors lose even more confidence in the economy. There is word out in the financial market circle that Ghana has recently defaulted on its debt to the Standard Bank for the financing of a [Teshie desalination project].\u201d<\/p>\n
According to the Bank of Ghana, the country\u2019s current total public sector debt stock stands at 88.2 billion cedis as at the end of March 2015, representing 65.3 percent of GDP.<\/p>\n
\u00a0Ghana\u2019s debt hit 76.1 billion cedis<\/strong> <\/span>by the close of last year, up from the 51.9 billion cedis it recorded in 2013.<\/p>\n Stabilization fund to help defray debts<\/strong><\/p>\n The Minister of Finance, Seth Terkper has said government will use proceeds from the stabilization fund to help defray Ghana’s debts.<\/p>\n He said the\u00a0stabilization fund will be used to set up a \u2018sinking fund\u2019<\/strong><\/a><\/span> which would be used to pay up some of the debts.<\/p>\n In the midst of all this, the cedi has plunged into another free round of free fall, triggering high cost of living and inflation.<\/p>\n The currency has so far depreciated by more than 20% to the major trading<\/a><\/strong><\/span> currencies this year alone.<\/p>\n The Bank of Ghana has sought to assure Ghanaians and investors that it has begun some of level of interventions<\/a><\/strong><\/span> to stabilise the situation but some financial analysts are skeptical<\/a><\/strong><\/span>.<\/p>\n –<\/p>\n By: Godwin A. Allotey\/citifmonline.com\/Ghana<\/p>\n