Former President John Dramani Mahama has said Ghana is at great risk of defaulting on its debt repayment.
He fears the country is in dire straits against the backdrop of the impact of the huge public debt and the slowed growth of revenue.
According to him, the heavy borrowing has not been met with the commensurate development the country deserves.
“At the last reckoning, over GI-I¢ 500 billion had been available to them (government) through taxes, grants, borrowing and other sources of revenue. No government in our recent history has been that fortunate.
“Despite this fortune, today, the Ghanaian economy ranks among the worst managed in the world. It is characterized by unsustainable public debt due to an unprecedented fiscal deficit, comparatively high and still rising inflation, a rapidly depreciating currency, spiraling cost of doing business, ever rising cost of living, high levels of corruption, abuse of civil and human liberties, and a general loss of investor confidence. Simply put, our country is on the verge of bankruptcy,” Mr Mahama said while delivering a paper titled ‘Ghana at a Crossroad’ on Monday, May 02, 2022.
Based on the estimated revenue and expenditure figures in the 2021 and 2022 budgets, the debt service burden worsened in 2021 to about 82%, but it’s expected to improve to 45% in 2022.
The main opposition NDC insists the government has run out of options and will have to seek a bailout from International Monetary Fund.