Former Deputy Minister for Finance, Cassiel Ato-Forson, is seriously cautioning government against pushing the country into a self inflicted crisis that could crush the economy.
According to Mr Ato Forson who is also the MP for Ajumako-Enyan Esiam constituency in the Central region, the country’s debt to GDP ratio in the range of 70% compared with the projected tad revenue to GDP ratio of 16.9% is just enough for debt servicing and cannot accommodate the whopping $50bn.
In a brief statement, the former deputy Finance Minster noted with concern that Ghana does not already have a prepared project of up to the magnitude of the amount mentioned and that putting together such documents for infrastructural and development projects could take up to 12months after which it will take 36 to 60 months to complete implementation.
The statement made reference to the current nominal debt portfolio which he says is projected to reach 242bn cedis by December 2018, which at a dollar rate of 5.1 to the cedi will be equivalent to $47bn.
He concludes that considering Ghana’s total revenue is just enough to service current debts, wages and salaries, it will be a serious risk to commit the country to an everlasting bond for 100yrs.
Find below the full statement.