According to a new International Monetary Fund (IMF) report, Ghana’s public debt would hit a little over 70% of the country’s total economic output by 2015, prompting concerns from the Bretton-Woods institution.
The IMF maintains when a country’s debt exceeds 60% of its total economic value, economic stability becomes threatened.
The report, ‘Fiscal Monitor’ outlines how governments around the world spend and mobilise revenue.
Joy News’ George Wiafe in Washington reports, the document also reveals the IMF has some serious concerns with some economic data government has put out as part of a process to secure assistance from the Washington-based lender.
“According to the report, Ghana’s public debt has even crossed the 60% mark level which will make it difficult for government to service these debts on time”, George reports.
The IMF also revealed that its assessment of the country’s actual public debt was not consistent with figures put out by the Bank of Ghana.
Bank of Ghana puts the figure at 55% –representing 58 billion Ghana cedis.
The IMF says its figures are a little over 60%.
Analysts say IMF’s revelation is an indication that the country’s debt has reached levels that can be likened to that of a Highly Indebted Poor Country (HIPC).
Deputy Head of Fiscal Affairs at the IMF, Sanjay Gupta says the development calls for tough measures by government to address the situation.
Some of these measures, according to experts, could bring untold hardships to Ghanaians.
Following Ghana’s request for IMF bailout, initial discussions between the government and the IMF have started. Negotiators from Ghana are currently in Washington to continue the process