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Ghana may seek ‘bail out’ in less than two years after exist from IMF – Ato Forson

Former Deputy Minister for Finance, Cassiel Ato Forson has predicted that with the current fiscal challenges the country Ghana will seek a “bailout” from IMF less than two years after the exit.

Speaking at a press conference in response to the mid-year budget review, the minority spokesperson on Finance expressed shock at the swollen public debt.

He projects that government’s debt will reach GH¢220billion by the close of the 2019 fiscal year.

He said “Surprisingly government has cosmetically posted a positive primary balance for two consecutive years at the time when the public debt has ballooned to GH¢204 billion. This has clearly exposed this cosmetic approach to fiscal accounting”.

“We project that based on government’s appetite for borrowing and the current trend, our public debt will reach GH¢220 billion the close of the 2019 fiscal year, representing about 62% of GDP. This would mean that in three years, president Akufo-Addo would have added GHC100 billion to public debt.”

This, according to the minority, only represents what has been added since 2017.

“President Akufo-Addo has borrowed about GH¢160million since 2017 with part of it used for debt reprofiling. The public debt would exceed the projected GH¢220 billion, once drawdown begins for a number of loans approved by parliament. This rapid increase in the public debt level means that we have reached a point of debt unsustainability, a fact confirmed by the World Bank country.”

The minority added that the mid-year budget review clearly shows that the public finances are in “dire strains and the resort to additional tax measures is an indication of the troubling times that we are in”.

They insist that the mid-year budget presented by Finance Minister only offers gloom and portend very difficult times for all Ghanaians.

 

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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