Every Ghanaian Owes Gh ¢ 2 , 700 Updated : 17 - Nov - 2014 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 a whopping GH ¢ 2 , 700 . 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 aforementioned 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 up till date , an additional amount of GH ¢2 ,320 had been added to the total debt stock owed by every Ghanaian including new born babies . Ghana ’ s public debt continues to rise sharply as it hit GH ¢ 19 .027 billion at the end of March 2011 compared to GH ¢17 .2 billion recorded in December 2010. Some economists , including the renowned Dr . Joe Abbey has described the trend as alarming , saying it could harm the nation in the long- term since it might not have the capacity to service or pay the debt . Over the last four years , the Danquah Institute , a policy think tank, has 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 loans . “ 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 B 2 from B 1 , citing the country’ s rising debt burden and deteriorating debt affordability . In its report , Moody’ s stated that the primary driver of its decision to downgrade Ghana ’ s sovereign rating to B 2 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 .
Posted on: Wed, 19 Nov 2014 09:31:44 +0000