The Minister of Finance and Economic Planning, Seth Terkper has rejected claims that government’s increasing\u00a0appetite for foreign loans has contributed to the mssive increase in the nation\u2019s debt stock, but it’s rather the continuous depreciation of the cedi.<\/p>\n
Seth Terkper while reading the mid-year review of the budget said Ghana\u2019s debt stock as at the end May, 2015 stood at GH\u00a290 billion representing 67.53% of GDP.<\/p>\n
[contextly_sidebar id=”PR6cdM4bcvhK4cHYf7Q2dj0RQFQBzcPk”]This he said was made up of GH\u00a253.8 billion and GH\u00a236.2 billion for external and domestic debt, respectively.<\/p>\n
He said \u201cGhana\u2019s total public debt stock, which stood at GH\u00a253.1 billion (US$24.5 billion) as at the end of December 2013, increased to GH\u00a279.6 billion (US$24.8 billion) at the end of December 2014. Of the total public debt stock, external debt was GH\u00a244.5 billion (US$13.9 billion) while domestic debt amounted to GH\u00a235.0 billion (US$10.9 billion), representing 55.96 percent and 44.04 percent of total debt stock, respectively.\u201d<\/p>\n
Meanwhile, several economists including the New Patriotic Party\u2019s (NPP) running mate, Dr. Mahamadu Bawumia have warned that governments continues borrowing is \u201cworrying\u201d<\/a><\/strong><\/span> since Ghana risks being classified as a country with a high risk of debt distress by International rating agencies<\/a><\/strong><\/span> following government’s continuous borrowing.<\/p>\n But during a joint interview with Citi Breakfast Show host<\/strong>, Bernard Avle and Radio Gold\u2019s Alhassan Suhuyini on Thursday, Seth Terkper downplayed the effect of borrowing on the nation\u2019s debt stock.<\/p>\n \u00a0\u201cOur debt stock increased not just because of the loans but more because of the depreciation of the cedi.\u201d<\/p>\n He said “If the cedi were stable, the rate of increase in debt stock would not have been as high as it is now.”<\/p>\n Our debt stock increased not just because of the loans but more because of the depreciation of the cedi – @SethTerkper<\/a> #AskTerkper<\/a> #CitiCBS<\/a><\/p>\n \u2014 97.3 Citi FM (@Citi973) July 23, 2015<\/a><\/p><\/blockquote>\n <\/p>\n If the cedi were stable, the rate of increase in debt stock would not have been as high as it is now – @SethTerkper<\/a> #AskTerkper<\/a> #CitiCBS<\/a> \u2014 97.3 Citi FM (@Citi973) July 23, 2015<\/a><\/p><\/blockquote>\n If you don’t borrow, you don’t do development – @SethTerkper<\/a> #AskTerkper<\/a> #CitiCBS<\/a><\/p>\n \u2014 97.3 Citi FM (@Citi973) July 23, 2015<\/a><\/p><\/blockquote>\n\n
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