Ghana’s debts reduced by GH¢150b in five months – Mahama

President John Dramani Mahama has reiterated that measures put in place by his administration to address the nation’s huge indebtedness have recently begun to show results and the cedi has been strengthening.

He said as a result, they have reduced the nation’s total debt over the last five months by almost 150 billion cedis, which was very significant.

“And so, if that trajectory continues, the target of reaching 55 to 58 per cent debt sustainability by 2028 will be reached by the end of this year, President Mahama revealed during a panel discussion at the 60th Annual General Meeting of the Africa Development Bank Group in Abidjan, Ivory Coast.

This, he said, gave the government fiscal space to invest in the most productive sectors of the economy.

“We’re engaged in a painful debt exchange programme to restructure debts and to bring debt to GDP to a range of about 55 to 58 per cent by 2028,” President Mahama said.

He noted that the debts restructuring was concluded early this year with the bilateral creditors, and it brought the quantum of debt down, but it also stretched out the repayments of the debts, which brought the nation down to about 75 or 76 per cent debt to GDP.

“Since then, we’re left with just three per cent of the debt. We’ve covered 97 per cent.”

“You must do smart borrowing, taking debts where you can create debt escrows so that the income for which you invested the credit can go to repay,” President Mahama said.

Source: GNA

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