ï¿½There has been a lot of noise about the state of Ghanaï¿½s indebtedness. This is just noise. A lot of it is just noise; empty noise and it is calculated at throwing dust into the eyes of the Ghanaian peopleï¿½ said Editor of the ï¿½Insightï¿½ newspaper, Kwesi Pratt Jnr.
The renowned journalist said this in reaction to the recent press conference organized by the minority in parliament on the state of the countryï¿½s economy.
The Minority, led by MP for Tafo Pankrono, Dr. Anthony Akoto Osei, at a press conference in Parliament on Thursday expressed worry about the rate at which the ruling government is borrowing (rate of GHï¿½1.1 billion per month) saying it could collapse the economy.
At the said press conference, the former Minister of State in charge of Finance stated that the " economic situation has now deteriorated into complete crisis" warning that the country risks losing its B+ credit rating. According to him, the country is at a 49.5% debt to Gross Domestic Product (GDP) ratio and that means the country is on the verge of crossing the 50% threshold.
"There is now consensus, even within government, that the economic situation has now deteriorated into complete crisis....It also needs to be pointed out that this 49.5% debt ratio means the country is on the verge of crossing the 50% threshold. Beyond this threshold, international credit rating agencies will downgrade our credit rating,"
However, speaking on Radio Goldï¿½s political discussion programme, ï¿½Alhaji and Alhajiï¿½, Kwesi Pratt posited that Minorityï¿½s assessment of the current state of the economy is just ï¿½calculated at throwing dust into the eyes of the Ghanaian peopleï¿½. To him, talk of Ghanaï¿½s state of indebtedness is just for ï¿½political expediencyï¿½ and ï¿½empty noiseï¿½.
ï¿½....they (Minority) are saying the debt to GDP ratio is 49.5%; that itself is contestableï¿½for developing countries like Ghana, the alarm bell starts ringing at the point where the GDP ratio is 60%. So from the statistics that they themselves are giving, Ghana is about 10% clear in that zone and yet they deliberately create the impression that we have arrived at the danger zone and that Ghana might be returning to HIPC,ï¿½ Kwesi Pratt said.
He said the question of what the money has been used for (as asked by the minority) is mischievous because government has ï¿½invested the money into infrastructural development; road construction and so onï¿½ and advised that government announces it so that Ghanaians will know that the money has been used for development.
Source: Rebecca Addo Tetteh/Peacefmonline.com
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