Ghana's debt is the country's largest HIPC country

– Pierre Frank LaPorte, country director of the Labor Bank, said that Ghana's growing indebtedness put it at the same level

– It is the opinion that the country must work hard and turn around its economic fortune as soon as possible

– The latest economic and financial summary report of the Bank of Ghana revealed that the public debt in May of the year amounted to about 200 million GHS, or about 38.8 billion USD

World Bank country director Pierre Frank LaPorte has expressed concern over Ghana's rising debt.

According to him, if the country's debt was not immediately controlled, Ghana could soon return to the HIPC Initiative.

He attributed the increase in the country's debts to the increase in government borrowing to pay outstanding debts without reinvesting funds.

READ ALSO: I am ready to protect the environment even if it will cost me 2020 – Nana Addo

LaPorte said it poses risks, especially for a country like Ghana, an emerging economy.

He was speaking at the World Bank Economic Marathon in Accra on Thursday, July 25th.

"In fact, the World Bank is very concerned about the recent debt trend. We see an increase in debt across Africa and we could return to HIPC debt levels, where the debt was not sustainable. All the benefits of the HIPC initiative are eroding," he said.

He added: "Borrowing is necessary for development, but we must take sustainability into account. Africa needs to be careful and Ghana is no exception. We must take into account the domestic and external debt because, when the economy is balanced, the currencies are not a problem.

"A country can repay its external debt, but there must be a balance so that your foreign currency reserves are not used too much for debt service," he said.

READ ALSO: Court grants bail to Nana Appiah Mensah after hearing

Ghana's total public debt in May 2019 was about 200 million GHc, or about $ 38.8 billion.

This is reflected in the latest economic and financial summary report of the Bank of Ghana.

Faces of Ghana: the kind teacher who devotes his free time to sew the uniforms of the students | #Yencomgh

READ ALSO: Fact Check: Ghana's Cocoa Production Declines Under Mahama

Do you know someone who is extremely talented and needs recognition? Your stories and photos are always welcome. Be interactive via our Facebook page.

Source: Yen