World Bank President warns Ghana not to burden future generations with debts
The World Bank President, David Malpass, has asked Ghana to hold down its non-concessional borrowing because of its impact on future generations.
He mentioned that “holding down the non-concessional debt means higher interest rate debt because that burdens the future generations.”
Malpass was responding to a question asked by a Ghanaian journalist who participated in the virtual Media Roundtable for some journalists in Western and Central Africa.
The president noted that the government needs to be transparent with both the debt taken and the investment projects that that debt might fund.
He also revealed that it is also the World Bank is working closely with the IMF as “both look to have countries have sustainable debt burdens rather than unsustainable debt burdens.”
Recently, Ghana has been classified as a high risk of debt distress country by the World Bank.
The Bank of Ghana indicated that Ghana’s debt stock had reached GHC291 billion ($50,140,405,800) as of the end of December 2020. This represents 76.1% of Ghana’s Debt to GDP Ratio.
Meanwhile, President Akufo-Addo, at a recent meeting in Paris, called for debt cancellation for some African countries.
By: Elisha Aberiganya | Follow us on Twitter @activtvgh
