The Governor of the Bank of Ghana, Dr. Henry Wampah has dismissed media reports that the country’s current debt stock means the country has declined back to a Highly Indebted Poor Country (HIPC) status. Dr. Wampah insisted that though the country’s debt stock has reached an alarming rate of GH¢ 94.5 billion, more than 70% of GDP, it still does not mean Ghana is now HIPC.
Dr. Wampah explained that it is only government that can declare Ghana HIPC. He said “to go in HIPC is a conscious decision by a country” and not just on assertions. “You can say that it [Ghana’s debt] has reached levels of pre-HIPC levels but you can’t say we are HIPC. To go HIPC is a decision by government, it’s not automatic that at some level you should go HIPC.” Dr. Wampah said a lot of analysis go into a decision by a country to go HIPC saying, “its not based on GDP analysis.” He was speaking on Monday at the central bank’s Monetary Policy Committee press conference.
Debt stock In May
The country’s total debt stock stood at 89.5 billion cedis which was 67.1% of Gross Domestic Product (GDP). Figures from the the Bank of Ghana, states that the country’s external debt stock has also increased by GHc4.8 billion, between May and June and currently stands at GHc58.6 billion representing 44% of GDP. Total domestic debt stock also increased by 200 million cedis between May and June. According to the central bank, the total domestic debt stock as at June, stood at GHc35.9 billion, representing 26.6% of GDP.
Source citifm
