The Minority Leader in Parliament is warning Ghana faces debt unsustainability if the current debt to GDP, which currently stands at 70 percent is not addressed.
Concluding debate on the state of the nation address Osei Kyei Mensah-Bonsu says all sectors of the country is in a bad state making Ghana uncompetitive for investment in West Africa.
“This is exceedingly worrying as it is tipping the country into the league of nations with a high risk of debt distress,” he stressed.
According to Mensah-Bonsu, the consequence of this characterization is that it will compromise Ghana’s ability to raise further financing from the international finance market.
Worse still, he said this will disable the country from servicing and paying its debt.
The Minority leader revealed that the interest payment on Ghana’s debt stock in 2014 was four times Ghana’s oil revenue for that year.
“In 2015, interest payment amounted to more than ¢9.5 billion, which was more than the debt stock in 2008 towards the end of Kufour’s term for which debt stock for which both the late President Mills and President John Mahama lampooned the NPP administration,” he said.
Mensah-Bonsu said this year’s interest payment will amount to ¢10.5 billion, about 24 percent of Ghana’s GDP which will go into debt servicing.