Sammy Gyamfi Communications Officer of the opposition NDC has upholded his flagbearer’s statements about the laboriously Indebted Poor Country (HIPC) status of Ghana.
According to him, John Dramani Mahama all through his Professionals Dialogue rounds held in Accra on Monday never brought up that Ghana has been declared HIPC.
Sammy Gyamfi defended that his flagbearer’s remarks, however, do not nullify any worries he, the flagbearer, has made relative to Ghana’s debt situation.
“He stated we are back to HIPC, and that is different from saying we have been declared as a HIPC by the IMF,” Sammy Gyamfi explained in an interview on Joy News. “What President Mahama was saying is factual, and that basically is that Ghana is back to the same debt unsustainable position that we were [in] at the time we were declared as a HIPC country by the IMF and World Bank, and we joined that Ghana’s debt sustainability ratio now is not anything to celebrate.”
Former President John Dramani Mahama
on Monday informed a few specialists at a assembly as a part of his campaign to seek re-election that the International Monetary Fund (IMF) has expected that Ghana’s current rate of borrowing and debt to GDP ratio of 76.7% put the country in a Heavily Indebted Poor Country (HIPC) level
. He described that this current economic level
was because of economic carelessness by the binding NPP.
Mahama noted: “The IMF in its Sub-Saharan African Regional Economic Outlook forecast the current rate of borrowing and debt at a frightening 76.7% debt to GDP ratio. Unfortunately, Ghana is back to HIPC status under Nana Akufo-Addo and Ken Ofori-Atta
But the IMF replied that the interpretation by former President Mahama “can be deceptive”.
The IMF maintained that the list on its website which the NDC flagbearer has been referring to is about nations that have been under the HIPC programme since 1996 and it is often updated.
Responding to this, the NDC Communication Officer said: “Our debt position is unsustainable; the IMF has made that clear. There are independent analysis experts and economists who have also confirmed that indeed our debt position is not sustainable because we have a position where the percentage of our debt to the total value of goods produced and services provided in Ghana, which is our GDP, is projected to hit 76.7%.
He then ended with: “If your debt to GDP ratio crosses the 70% threshold, it means that it is not sustainable, which takes us back to the same place we were at the time we joined the HIPC debt relief programme.”