Deputy Minister for Finance. Abena Osei-Asare
We have not massaged the figures, Finance Ministry
Ghana’s debt to reach 83% of GDP by December 2021, Ato Forson
Finance Ministry underrepresenting Ghana’s debt issue, Ato Forson
Deputy Finance Minister, Abena Osei-Asare, has denied claims that Ghana’s debt to GDP ratio is 81% instead of the 79.6% released by government.
According to her, Ghana’s debt-to-GDP ratio is yet to pass the 80% mark as some analysts had projected that Ghana would by the end of 2022.
The minister stated that the debt to GDP ratio currently stands at 79.6% according to provisional reports she has received.
“Our debt to GDP ratio is 79.6 unlike what people are saying about 83 and 84. We have never massaged any numbers. We always present the data as it is and you can always compare,” she said.
She also stated that Ghana’s total debt is reducing, inferring from the levels of borrowing in 2020 and 2021.
“It is not just the economy expanding, but like I told you, when you look at the levels, we borrowed in 2020 and you compare to 2021, clearly you will see a dip in the levels of borrowing for 2021.
“This should tell you that right from the beginning of 2021 we set out an agenda to contain our debts. And the IMF even said it that even though our levels of debt has elevated, it is still within sustainable levels,” she said.
Meanwhile, Ranking Member on Parliament’s Finance Committee, Cassiel Ato Forson after government released the status of Ghana’s public debt stated that the Ministry had failed to include some key elements in its calculation, thus under-representing the actual situation on the ground.
He also projected that Ghana’s public debt to reach 83% of GDP by December 2022.
Speaking on JoyNews’ PM Express, he said, “As of November, the math points to the fact that it was 81% of GDP, yes I’ve heard the Ministry actually [peg] it at 78% of GDP.
“But it is important for us to note that this excludes the Energy Sector Levies Bond (ESLA) bond. This excludes the Sinohydro money and the GETFund securitization, which we call the Daakye. It excludes them. If you’re to add all of them, you’re talking of 81%,” he said on Wednesday.
He accused the government of underrepresenting Ghana’s debt issue to the public.