Every Ghanaian owes GH¢2,700

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A report on Myjoyonline says, The current state of Ghana's public

debt, according to the latest figures from the Bank of Ghana means

that every Ghanaian including new born babies, automatically owe


The total public sector debt stock as at the end of August 2014 was

GH¢65.7 billion (57.3% of GDP), up from 55.5 percent of GDP (GH¢51.9

billion) as at the end of December 2013.

Ghana with an estimated population of 25 million people, when divided

by the aforemntioned public debt (GH¢ 65.7 bn), means that every

Ghanaian owe GH¢2,700 to the country's creditors both internally and

externally as of August this year.

In 2009, every Ghanaian was indebted to the tune of GH¢380 as the

total public debt stock at that time stood at GH¢9.5 billion.

This means that from 2009 till date, an additional amount of GH¢2,320

had been added to the total debt stock owed by every Ghanaian.

Ghana's public debt continues to rise as it hit GH¢19.027 billion at

the end of March 2011 compared to GH¢17.2 billion recorded in December


Some economists, including the renowned Dr. Joe Abbey has described

the trend as alarming, saying it could harm the nation in the

long-term as the nation may not have the capacity to service or pay

the debt.

Over the last four years, analysts in the financial services industry

such as Standard ans Poors and policy think tanks such as the Danquah

Institute, have been vocal in raising concerns about what it considers

to be a "mad rush for loans" by government, and the disturbing absence

of real transparency and value-for-money component in several of these


"Today, it has become evidently clear that Ghana is fast-forwarding

backwards to its 2000 status of a poorly-indebted, and with very

little to show for this high level of unprecedented borrowing and

spending," the Institute has stated in a statement recently.

The Institute continued: "What government is effectively doing is

building a future of debts for the youth of Ghana to inherit and

struggle with."

In March this year, Fitch Ratings, an international rating agency, has

revised the outlook on Ghana's long-term foreign and local currency

Issuer Default Ratings (IDR) from stable to negative, casting doubts

over the country's ability to service its debts in the future in time.

In June this year, another international rating agency, Moody's

Investors Service, also downgraded Ghana's sovereign rating to B2 from

B1, citing the country's rising debt burden and deteriorating debt


In its report, Moody's stated that the primary driver of its decision

to downgrade Ghana's sovereign rating to B2 was the country's high and

rising debt burden and deteriorating debt affordability.

The report indicated that the rating agency expected public debt to

exceed 65 per cent of Gross Domestic Product (GDP) by the end of 2015

from 55.7 per cent in 2013, mirrored by rising interest expenses

relative to government revenues.

Kofi Oppong Kyekyeku

I am a Ghanaian Broadcast Journalist/Writer who has an interest in General News, Sports, Entertainment, Health, Lifestyle and many more.

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