Friday, 08 December

Akufo-Addo’s gov’t creating generational debt – Economist

Mr Bernard Oduro Takyi

Mr Bernard Oduro Takyi, an economist, has accused the New Patriotic Party (NPP) government, led by President Nana Addo Dankwa Akufo-Addo, of burdening future generations with significant debts. 

He expressed concern over the government's borrowing practices, labelling them as unsustainable and detrimental to the country's economic future.

He asserted that the current administration's borrowing record was cause for alarm and criticised the government for accumulating what he termed "generational debt".

Mr Takyi pointed out that the economic challenges currently faced by Ghanaians would persist for at least 50 years if not longer.

The economist differentiated between good and bad debts, emphasising that many of the debts incurred under President Akufo-Addo and Vice President Bawumia's leadership fell into the latter category.

Speaking on the mid-day news on Accra 100.5 FM on Tuesday, September 19, 2023, he indicated that the government had prioritised borrowing over managing the country's wealth and resources effectively.

He raised concerns about Ghana's top position in Africa in terms of debt owed to the International Monetary Fund (IMF) and attributed this to the government's excessive borrowing practices, suggesting that even newborns in Ghana would be saddled with debt burdens in the coming years.

These comments came in response to the news that Ghana is the most indebted African country to the IMF, with a 35.3% increase in outstanding loans in the second quarter of 2023. According to the IMF's Quarterly Finances report, Ghana's outstanding loans to the institution reached Special Drawing Rights (SDR) 1.689 billion as of July 31, 2023, equivalent to $2.227 billion. 

This represented a significant increase from the $1.246 billion recorded as of April 30, 2023. 

The report indicated that Ghana had received a $600 million bailout package from the IMF in June 2023 to address its fiscal challenges

Source: Mensah