Business News of Thursday, 11 March 2021
Source: 3news.com
A financial analyst at Dalex Finance, Mr Joe Jackson, has said government has no option but to borrow to deal with the ravages of the coronavirus pandemic on the local economy.
He said this ahead of the government’s budget statement presentation to be made on behalf of the Finance Minister by Leader of Government business in parliament Osei Kyei-Mensah-Bonsu on Friday, March 12,
In a tweet on Thursday, March 11, Mr Jackson said “I am on 3FM discussing the SONA address by HE NADAA and looking forward to Friday’s Budget. We have no choice but to borrow if we are to mitigate the effects of COVID-19.”
His comments come after Ghana’s debt situation hit 74% at the end of 2020 as stated by a recent economic and financial data released by the Bank of Ghana (BoG).
The central bank put the country’s debt stock at GH¢286.9 billion.
Meanwhile, the European Union (EU) Ambassador to Ghana, Diana Acconcia, has said although Ghana’s public sector debt is increasing, it may not be a worrying situation.
Speaking in an interview with TV3’s Alfred Ocansey on the Business Focus programme, Monday, February 1, she indicated that the current debt situation is high for a developing country like Ghana, however, it all depends on how the market reacts to it.
In her view, more investors are running to buy Eurobond from Ghana in spite of the rising debts.
Asked for her views on the debt situation, Ambassador Acconia said “The figures are around 70 to 76 per cent of GDP, as you said it is indeed high for a developing country like Ghana.”
She further explained that whether or not the debt will be a problem depends on how the market reacts to the situation.
“The problem is how the market perceives Ghana’s debt,” she said, adding that “A few years ago, the International Monetary Fund was saying that Ghana is closed to the level of debt distress.
I am on 3FM discussing the SONA address by HE NADAA and looking forward to Friday's Budget. We have no choice but to borrow if we are to mitigate the effects of COVID-19.#BudgetFriday #SONATuesday @NAkufoAddo @3fm927 @Attaanii pic.twitter.com/KjBrz0D9Xp
— Joe Jackson (@Joe_Jackson_GH) March 11, 2021