Dr. Anthony Akoto Osei
Dr. Anthony Akoto Osei

The Minority New Patriotic Party (NPP) in Parliament has raised concerns about the nation?s debt sustainability issues and warned government against taking Ghana the Greece way.

Dr. Anthony Akoto Osei
Dr. Anthony Akoto Osei

According to the Minority, Ghana has accumulated too much debt in the past six and half years under the ruling National Democratic Congress (NDC) government adding that a 70 percent debt to GDP ratio is unsustainable and so the rampant borrowing must stop.

In its official response to the government?s 2015 Mid-Year Review budget statement at a press conference in Parliament House on Wednesday, the Minority suggested that the country is losing control of its destiny under a John Mahama led administration.

The Minority Spokesperson on Finance, Dr. Anthony Akoto Osei indicated that, ?the country is getting too steeped into borrowing. Any country that is steeped in borrowing has lost control over its financials; and a country that has lost control over its financials has lost control over its destiny and the nation must wake up.?

He further observed that the Mahama Administration has expanded its borrowing and spending, its debt and deficit even though many Ghanaians are already experiencing the burden of lost hope, unemployment, erratic power supply among others.

According to him, ?Ghana?s total debt stock as at the end of May,2015 stood at Ghc 90 billion, representing 67.53 percent of GDP. For a government that inherited a debt of Ghc 9.5 billion in January 2009, that is 850% of what the NDC inherited from the NPP administration. It is on course to increase the debt it inherited by 10-fold by the end of August this year.?

The MP for Old Tafo, Dr. Anthony Akoto Osei, further indicated that the issuance of the Eurobond coupled with the over 300 million dollar loans recently approved by Parliament would just add to the government debt and in the process overburden the Ghanaian tax payer with more debt servicing. He said this may be a recipe for chaos and on the path leading to a similar fate suffered by Greece.

Greece has been in the news recently for having an unsustainable debt to GDP ratio that is threatening to collapse its economy. The IMF prescription of a very high form of austerity measures has brought untold hardship to its citizens. Greece owes up to 96 billion Euros, plunging the country into recession for the past five years.

Source: Clement Akoloh, spynewsagency.com

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