Ghana in excessive danger of debt misery, finance minister says - Geo Tv News

Ghana in excessive danger of debt misery, finance minister says

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ACCRA — Ghana is in excessive danger of debt misery and has agreed on a debt administration technique with the Worldwide Financial Fund (IMF), finance minister Ken Ofori-Atta mentioned on Thursday.

Ofori-Atta is within the midst of negotiating a aid bundle with the IMF because the West African nation faces its worst financial disaster in a era.

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“The present debt sustainability evaluation carried out reveals that Ghana is now thought-about to be in excessive danger of debt misery,” the minister informed lawmakers throughout his presentation of the 2023 funds.

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“Authorities and the IMF have agreed on program aims, a preliminary fiscal adjustment path, debt technique and financing required for this system,” he mentioned, including he hopes to achieve a deal “very quickly.”

He mentioned the depreciation of the cedi was “severely affecting” Ghana’s skill to handle its public debt, which has elevated to $48.9 billion this yr.

Ghana will implement a debt change program to deal with the challenges, he mentioned.

Financial development is predicted to sluggish to three.7% of GDP in 2022 from 6.7% final yr, and to sluggish additional to 2.8% in 2023, he mentioned.

Ofori-Atta has confronted requires dismissal from each the ruling social gathering and opposition who accuse him of financial mismanagement. Final week he apologized for the nation’s financial hardship however defended himself towards their claims.

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Ghana will impose a debt restrict on non-concessional financing amongst different reforms, and can give attention to utilizing financial coverage to regulate inflation, which has exceeded 40%, the minister mentioned.

The federal government will freeze new tax waivers for overseas corporations and evaluate tax exemptions for mining, oil and fuel corporations. It is going to additionally freeze hiring for civil and public servants, he mentioned.

Nonetheless, Ofori-Atta didn’t provide any cuts to spending on flagship applications, and detailed a swath of infrastructure challenge expansions comparable to highway enlargement. ($1 = 14.0000 Ghanian cedi) (Reporting by Cooper Inveen and Christian Akorlie in Accra Extra reporting by Bate Felix in Dakar; Writing by Nellie Peyton; Modifying by James Macharia Chege)

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