Ghana\u2019s debt to GDP ratio could hit the 70 percent threshold if the base rate for calculating the figure, is adjusted to reflect current growth targets.<\/p>\n
This is the indication from economist, Dr. Eric Osei Assibey.<\/p>\n
Crossing the 70 percent mark is also likely to affect Ghana\u2019s international credit rating.<\/p>\n
\u201cThe projection was about 4.9 percent based on the revised budget. If that is what was used to obtain the 65.9 percent and now the IMF has revised the country\u2019s growth target to 3.3 percent thereby reducing the base. Calculating the debt levels with the relatively lower growth rate will result in a higher figure,\u201d he warned.<\/p>\n
A former Deputy Governor of the Bank of Ghana, Dr. Bawumia has challenged government\u2019s debt to GDP figure of 65 percent.<\/p>\n
But Finance Minister, Seth Terkper has defended the figure explaining that it demonstrates government\u2019s commitment to reduce the country\u2019s fiscal deficit.<\/p>\n
However Dr. Osei Assibey explains to Citi Business News <\/strong>a revision of Ghana\u2019s growth target coupled with government\u2019s new 5th<\/sup> Eurobond and the 10 million dollars local bond, will cause the country\u2019s debt to cross the 70 percent mark to GDP.<\/p>\n \u201cWe have also just borrowed some 750 million dollars from the fifth Eurobond issued last month which has not been factored yet. So adding this figure together with the 10 million dollars local bond, then we are talking of a figure over seventy percent of GDP,\u201d he stated.<\/p>\n Figures released by the central bank indicate that the country\u2019s total debt stock has almost trippled from about 9.3 million dollars in 2009 to 27.8 million dollars at the end of July this year.<\/p>\n Meanwhile, the domestic component has also increased from 4.29 million dollars to 12.5 million dollars between the six year period.<\/p>\n The external component has also increased from 5 million dollars in 2009 to 15.3 million dollars at the end of July this year.<\/p>\n The debt to GDP ratio for the period has reached 65.9 percent from the 36.9 percent recorded in 2009.<\/p>\n