Prime News Ghana

Haruna Iddrisu questions Akufo-Addo's silence on Ghana's debt stock

By Justice Kofi Bimpeh
Haruna Iddrisu
Haruna Iddrisu
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Minority Leader, Haruna Iddrisu has questioned Akufo-Addo's silence on Ghana's debt stock at his State of the Nation Address.

According to him, the President was quick in 2017 to quote the debt he has inherited but unable to do so yesterday.

"What is interesting is that we will debate this state of the nation and we will debate the President's record but today interestingly he is silent on our national debt, four years ago he said I inherited this debt what is the state of our national debt?"

Ghana’s debt situation continues to deteriorate as shown by new figures released by the Bank of Ghana.

Total public debt stock at the end of 2020 rose to GH¢ 286.9 billion representing a year-on-year increase of 23.95% over the total public debt stock recorded at the end of the year 2019, adding more pressure on the government to slow down the rate of debt accumulation.

The new debt figure pushes Ghana’s debt to GDP ratio to 74.4 % at the end of 2020 from 62.4 % recorded at the end of 2019.

A breakdown of the debt numbers shows that the component of the debt secured outside the country remained relatively stable in the last two quarters of 2020, rising marginally (GH¢ 3 billion) to GH¢ 139.6 billion, and this is about 36.2% of the total value of the economy which is projected to be about GH¢ 385 billion.

On the other hand, the component of the debt secured locally has risen significantly in the last 2 quarters of 2020 (GH¢ 25 billion) to GH¢147.3 billion, representing 38.2 percent of GDP.