Browsing: Ken Ofori-Atta

The provisional debt data as at end September 2022 shows a significant increase in Ghana’s public debt largely due to exogeneous factors.

The newest voice is the Chief Executive Officer of the Ghana Telecommunications Chamber who wants the rate to be reduced from 1.5% to 0.1%.

This shows the sharp relationship the Cedi depreciation has on the untamed imported inflation. However, the Finance Minister has reiterated government’s commitment to stabilising the Ghana cedi by the end of the year.

The report said persistent uncovered auctions and portfolio reversals by non-resident investors continue to pose risks to financing of the budget, resulting in monetization of the budget deficit by the central bank.

The proposal is coming at time when there is a debate whether the policy should be reviewed or abolished since it’s consuming chunk of government revenue.

According to the 2022 Mid-Year Budget Review, interest payments, which dominated government expenditure for the first half of 2022, stood at GH¢20.4 billion, representing 4.5% of Gross Domestic Product (GDP). This was higher than the targeted amount of GHC¢19.05 billion.

This is additional unplanned expenditure to government which is expected to heavily increase public sector wage bill, thereby widening the fiscal deficit.

Seventy communities across nine Island districts through mini-grids, 505 communities in 11 districts through standalone solar photovoltaic (PV) systems in the country.

The issue of restructuring debt is a very complicated issue especially with the private sector and the Eurobond etc. We need to decide among ourselves on what type of structure that will be useful to us. We have essentially about 50/50 with regards to domestic and external debt”, Ken Ofori-Atta expressed.

According to Finance Minister, although the economy is in difficulties now, he believes the it is heading in the right direction, and therefore government will find alternative ways of refinancing the country’s debt.