Akufo-Addo added 80 billion GHS to the stock of debt in two years; cedi fall added15.3 billion GHS – Minority

General News of Wednesday, March 20, 2019

Source: clbadfmonline.com

2019-03-20

In the space of two years, the Akufo-Addo government has added 80 billion GHS to the outstanding Ghanaian debt, said the minority in Parliament, adding that the fall of the local currency, the cedi, had added the amount of 15.3 billion GHS to the bill. .

The faltering cedi has almost hit the $ 1 mark: GHS6 this month, but has recorded gains to stay at $ 1: 5.65 GHS after the Bank of Ghana injected some $ 800 million into the system. .

According to the parliamentary minority, the decline in the cedi essentially means that Ghana's external debt stock soared in November 2018 to GHS 101.3 billion at the current exchange rate.

At a round table on Wednesday, March 20, 2019 on the theme: "A meeting with the minority on the state of the Ghanaian economy", the spokesman of the Caucus on Finance, Cbadiel Ato Forson, referred to the 2019 budget: "All fiscal and financial estimates were made using a projected exchange rate in cedi / dollar of 4.8 GHS per dollar.Currently, the Cedi / Dollar exchange is rated at 5, 65 GHS per dollar The implication is that all government loans whose service was supposed to be hedged at the projected exchange rate of 4.8 GHS suddenly became more expensive. "

"The stock of total public debt has increased significantly at the current cedi / dollar exchange rate of 5.65 GHS. In November 2018, the total outstanding external debt reported by the Bank of Ghana was US $ 18.014 billion.

"At the then exchange rate of 4.8 GHS per dollar, the total foreign debt in local currency amounted to 86.4 billion GHS. Even though the government has not added anything to the external debt stock over the last three months, which we all know is impossible, the external debt of $ 18.0 billion recorded in November 2018 will be converted at the current exchange rate in SGH101.3. billion.

"This means that without taking into account the new loans contracted by the government, the only depreciation added 15.3 billion GHS to Ghana's external debt."

In November 2018, the public debt amounted to 172.9 billion GHS. According to the calculations of the minority, however, this figure increases to 201,8 billion GHS, if the debt of 15,3 billion GHS resulting from the misfortunes of the cedi as well as the loan of 13,6 billions of GHS issued to reform the banking sector are added.

"This means that, in just two years, the NPP government has added about 80 billion GHAR to the stock of public debt," said the former deputy finance minister.