Dr Frank Banor, an economist has revealed that Ghana’s interest on debt is 21% of the total revenue collected. Speaking on the Movement TV morning show, he said that the country’s debt rate has increased over the years due to poor debt management.
According to the International Monetary Fund (IMF), Ghana’s debt rate stands at 81.5% of the GDP. The country pays a higher interest rate which is sometimes more than the money borrowed.
“Covid-19 pandemic led countries to establish strict measures in reducing the spread of the virus, including the lock down where citizens were made to stay at home. The government of Ghana resorted to borrowing to support the economy; paying government workers, provision of personal protective equipment for health workers, free water and electricity, the opening of food banks for citizens and other actions that decreased the spread of the virus” he said
He added that, to ensure the country reduces its borrowing pattern; it has become very necessary to add values to raw materials such as gold, cocoa, diamond to increase the foreign exchange and reduce the dependency on foreign aid.
