[ 2016-11-23 ]

ICU worried over Ghana’s GHC112.4b debt rate Source: http://3news.com/icu-worri
The Industrial and Commercial Workers Union (ICU)
has raised concerns over the need for the
government to immediately take steps to prevent
the country from its worsening debt situation.

Figures from the Bank of Ghana shows the
country’s total public debt stands at GH¢112.4
billion as of September 2016 which translates into
about 67.4 per cent of GDP.

Between January and September this year, more than
GH¢13 billion has been added to the total public
debt stock which stood at GH¢98.8 billion in
January. This development places Ghana on the path
of meeting the International Monetary Fund’s
projection of a 66 per cent debt-to-GDP by the of
the year. Government debt as a per cent of GDP is
used by investors to measure a country’s ability
to make future payments on its debt, thus
affecting that country’s borrowing costs and
government bond yields. General Secretary ICU
Solomon Kotei says it is imperative for government
to put in place measures that will prevent total
collapse of the economy. “The question is when
are we going to see a stop? Have we become
perpetual debt building nation and what are the
impact of some of these loans? Some of these loans
that we are taking when the payment begins we may
have to sacrifice some of our important resources
like cocoa, oil etc. to service the loans,” he
noted.

He wondered when Ghanaians will see relief in
their lives, adding “We should not just take the
joy and pleasure to always borrow because when we
borrow with control over the payment it doesn’t
mean well for our country” The national debt
keeps increasing. Total public debt as a
percentage of GDP between 2014 and 2016 July has
been fluctuating between the 60 per cent and 73
per cent. As of July 2016, the debt to GDP ratio
stood at 65.9 per cent. The phenomenon is largely
attributed to the lack of fiscal discipline where
government expenditure consistently exceed its
revenue.

Source - 3news.com

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