Ghanaians who believed the Akufo-Addo government will reduce the public debt by not borrowing money in the same way his predecessors did, may have their hopes dashed.
This is because President Nana Addo Dankwa Akufo-Addo has said his government will keep borrowing money to put up projects he described as “assets” to pay back those loans.
He said every country borrows money for projects and Ghana is not an exception.
“We will borrow money; everybody borrows money. The United States of America is one of the biggest debtors in the world. So borrowing money is not necessarily a betrayal of the concept of independence. The key for us in borrowing money is that we borrow money to create assets that will allow us to pay the money back. That is the key…If we borrow the money and use it properly it is an asset for us in expanding our economy and infrastructure,” he added.
The president was speaking at an entrepreneurship forum in Nigeria on Thursday organised by the Tony Elumelo Foundation.
His remark was in response to a question from one of the participants who queried President Akufo-Addo on why he goes for loans from China despite trumpeting the Ghana Beyond Aid mantra.
President Akufo also said: “Borrowing money is not aid. What President Xi Jinping offered is a $60 billion fund which African countries can access, not as aid but as loans. If you can produce a project that the Chinese think is worth supporting, you can have access to that money, but you have to pay it back.”
The event brought together some 5,000 young African entrepreneurs who are being funded, trained and mentored by the Tony Elumelu Foundation.
President Nana Akufo-Addo and his Vice President, Dr. Mahamudu Bawumia while in opposition criticized the Mahama government over what they called excessive borrowing.
Mahama according to Bawumia had a voracious appetite for foreign loans, an action he described as “reckless” and “worrying.”
“On this track, Ghana is clearly on the way back to the unsustainable debt level that pushed us to HIPC. This is a worrying development because Ghana received HIPC relieve just ten years ago after a similar debt binge by the previous NDC government. If the current borrowing binge continuous it will only be a matter of time before the international rating agency will classify Ghana as a country with a high risk of debt distress,” he warned.
Dr. Bawumia was addressing members of the NPP UK branch and the Young Executive Forum in the UK in November 2014 when he made those assertions.
Ghana’s total debt hits GHS159.4bn
Recent data released by the Bank of Ghana put the country’s total debt as at July 2018 at 159.4 billion cedis, representing 65.9 percent of the GDP.
The data, which was published after the Monetary Policy Committee concluded its meeting, showed that the total debt stock increased by 5.1 billion cedis from 154.3 billion cedis in May, to 159.4 billion cedis in July 2018.
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Source: citinewsroom.com
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People like you just follow politicians stupiiiiiiiiiiidily. Has our total debt stock increase or decrease in real monetary value as a result of NPP borrowing. If you owe a country $50million and borrowed $20million from a different country without paying back, are you going to pay less than $70million because your debt to GDP ratio has decrease. Stop this stupiiiiiid economic principles. If you don't understand what debt to GDP ratio means it simply means you have the ability to pay back your debt but it does not reduce your debt stock.
NDC and NPP. One borrows and the debt to GDP ratio rises. The other borrows and yet the debt to GDP ratios keeps falling. Don't just criticize because some empty propaganda loving "koobis" are saying it. Criticize because the borrowing is badly increasing the debt to GDP ratio and choking us,because we have very little fiscal space. That is what the brilliant economist spoke about.
wo y3 gyimifo0 papa. were u not in this country when he stated any ediot canborowand there is money in the country no need to borrow. again wo y3 gymifoo paaa
I feel pity for those raining all kinds of insult to the President. The story as reported is in full context yet these too known cheap propagandists decide to short read the content and further distort it. The President repeated what he said years ago that borrowing is never wrong but what you use the money for makes it good or bad. Those insulting him need free education to increase their logical reasoning.
What is this mr. president? i am so disappointed in you
THIS IS SENSELESS. HOW CAN YOU SAY THIS OLD MAN. HOW CAN YOU SAY SOMETHING IS WRONG AND TURN BACK TO THE SAME PEOPLE - ITS OK NOW BECAUSE I AM IN GOVERNMENT. ***barred word***.
This man and his entourage see Ghanaians as bunch of stooooopid and ediots
Nana addo is a very ***barred word*** liar. With all the criticism against mahama for borrowing, he should have eaten the humble pie and apologized to Ghanaians instead of speaking nun sense that every nation borrows. Anyone who says one thing and does another cannot never be trusted because he is such a disgraceful individual. He is a complete disappointment to Ghanaians. We should try you that you were saying, is this you came to do. Ghana, we are sitting on money but we are suffering under mahama, all these statements were lies.
You and your government are the most confused, discredited and worst government Ghana ever had!!! In one breath you say one thing and in another breath say a different thing!!! Bawumia claimed there was so much money in Ghana hence will not borrow when voted for. You claimed your pre-predecessor was borrowing recklessly but honestly, has projects to "at least" show for the borrowing even if not full account of the loans. But for you and your government what have we used the loans for so far??? You also proclaimed "Ghana beyond aid"....... Go for loans, does that not constitute "aid" even though we will pay back, considering your vice saying there is so much money in here.. We expect you to acknowledge this fact and just explain to us that we saw things differently then....and that will do the magic!!!
I am not sure anyone disputes the fact that every country borrows, but you and your barwuliar, lied to Ghanaians that ndc was wrong in borrowing even though it was clear that the amount of money ndc borrowed was being used to build shs schools, roads, extension of electricity, markets, stadia, fertilizers for farmers, farm machines for farmers, community centers for villages, computers for basic and secondary schools, and a host of social interventions. How how can the same person who said it wrong to borrow now turn round and say even thr USA borrows? Interestingly, even if you have changed your position why wouldn't you admit that you lied to Ghanaians. No one has also seen the evidence of what you have used the borrowed money for. Unemployment in on the ascendancy, while you displayed a comedy with unemployed graduates at the black star square only for them to still be home. The most wicked and dishonest president in the history of Ghana. As for barwumia the least said about him the better.