Ghana could go back to HIPC with $23.4b debt - Economist

An economist with ISSER, Dr. Robert Osei, has warned that Ghana is gradually entering into HIPC with the latest public debt stock of 23.4 billion dollars.

Ghana’s public debt stock stood at 23.4 billion dollars at the end of September this year.

This is equivalent to 53.5 percent of GDP. It is made up of 10.7 billion dollars of external debt and 12.7 billion dollars of domestic debt.

This was contained in Tuesday's budget and policy statement that was presented to Parliament by the Finance Minister, Hon. Seth Terkper.

Though government has promised reduce its borrowing significantly next year, economist Dr. Robert Osei has warned that Ghana is gradually entering into HIPC.

“…We have borrowed heavily on the domestic front and so in terms of our domestic debts it has actually risen and it not surprising”.

“If you look at our fiscal deficits over the last seven or eight years what you do see is increasingly the deficits have been significantly higher than most countries around the world in terms of the share of GDP” Dr. Osei told Radio XYZ in an interview.