The Minority spokesperson on Finance, Cassiel Ato Forson, has taken a swipe at President Nana Addo Dankwa Akufo-Addo and his economic management team as the government works to restructure the country’s debt.
Describing the move as a “Mickey Mouse” one, Ato Forson warned that the way and manner government wants to go about the debt restructuring will hurt Ghanaians.
“Mr. President, please beware that, a Mickey Mouse form of debt restructuring will hurt Ghana big time. Your debt restructuring must not target domestic creditors. It will destroy us,” he said at an event dubbed Building the Ghana We Want.
The public debt stock as of July 2022 was almost GH¢400 billion. Ghana currently cannot borrow on the internal markets as creditors doubt if the country could service its debts.
Ghana is currently seeking $3 billion in support from the International Monetary Fund (IMF) amid worsening economic conditions.
There are reports that government is seeking to give its domestic debts a haircut, which could even affect some pension funds.
“The truth is, Ghana cannot currently afford to repay its debt according to the finance agreement and provide public goods at the same time. Ghana is simply insolvent, in other words bankrupt.”
Ato Forson said Ghana is in a deep mess because the managers of the economy failed to act.
“For them, everything is about the next elections, they never accept responsibility. They always say, ‘it wasn’t me, it was the guy behind the tree.’ They live on another planet, and don’t appreciate what the IMF will require from them, let alone start action. The ineptitude is unbelievable.”
The legislator believes Ghana will require a debt relief of around GH¢200 billion to make Ghana’s current debt sustainable.
Ato Forson believes the Ghanaian economy is suffering from “Sovereign Insolvency Stress and Stagflation, Coupled with Acute Debt Overhang Syndrome (SIS-SADOSES).”
