The Minister for Finance, Ken Ofori-Atta, has placed a loan agreement of $28 million before the floor of Parliament.
This loan is to help procure 275 vehicles for the 8th parliament members.
The Finance Committee of parliament is set to consider the loan agreement and report to parliament for onward action.
Meanwhile, Ghana’s public debt stock is not falling anytime soon as it is projected to hit 81.5% of Gross Domestic Product (GDP) by the end of this year, the IMF has revealed in its AApril2021 Fiscal Monitor.
This means the country’s debt will go above GH¢300 billion before the end of 2021.
Per the IMF data on low-income developing countries, Ghana’s debt to GDP ratio will surge to 83.2% in 2022, and then further to 84.8%, 86.0% and 86.6% in 2023, 2024 and 2025 respectively. It will however drop slightly to 85.5% in 2026.
This could possibly push the economy into a highly debt distress category, as majority of revenue will be used to service debt, leaving only small fiscal space.
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