BUDGET: Ghana Goes HIPC

Ghana has finally decided to join the Heavily Indebted Poor Countries (HIPC) Initiative. This was announced by the Finance Minister Yaw Osafo-Marfo when he presented the country's budget before parliament today.

According to the Minister, the President directed that the country join HIPC to relief it of its debt and put the economy back on track.

The Finance Minister later explained why the country should join HIPC in an interview with JOYFM after presenting the statement. He noted that HIPC is defined as countries whose per capita income is less than $690. He said "Ghana's per capita income is $390 and we are far below HIPC or worse than HIPC. We should distinguish between potential wealth and poverty. If you don't have working capital to run your company, the company will collapse. If you don't have money to eat at a particular moment, it doesn't mean you don't have houses. You have liquidity."

The Finance Minister believes that the debate on whether or not the country should join HIPC should continue while the necessary structures are put in place for a final decision.