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Ghana's Debt Stock crosses Sustainable Levels - World Bank President Warns.

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World bank president.


After 2016 when the Nana Addo led government took over office, Ghana's dept stock stood at a staggering 170 billion Ghana Cedis. Even at these levels, experts cautioned that it was not sustainable.

But unfortunately, the government of the day went on a borrowing spree which ballooned our debt stock to a whopping 291 billion Ghana cedis within the space of just four years. But rather surprisingly, the average Ghanaian is now asking what the government used the money for apart from the free senior high school program.

What got Ghanaians talking more over the week was the comments made by the ceo of the world bank. Responding to a question posed by a Ghanaian journalist, he said, “holding down the non-concessional debt means higher interest rate debt because that burdens the further generations.”

The World Bank president also indicated that it was working closely with World Bank and IMF “as we both look to have countries have sustainable debt burdens rather than unsustainable debt burdens.”

His comments are coming when Ghana has been classified as a high risk of debt distress country by the World Bank.

The Bank of Ghana indicated that Ghana’s debt stock had reached GHC291 billion as of the end of December 2020. This represents 76.1% of Ghana’s Debt to GDP Ratio.

Meanwhile, the president at a recent meeting in Paris, called for debt cancellation for some African countries.


What do you make of this? Comment your thoughts in the comments section below.

Content created and supplied by: GhanabaNews360 (via Opera News )

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