President Nana Addo Dankwa Akufo-Addo’s nominee for Senior Minister, Yaw Osafo Maafo, has bemoaned the state of the Ghanaian economy, saying the country is extremely indebted.
The former Minister of Finance under the administration of former President John Agyekum Kufour however said despite the high level of the Ghana’s indebtedness, it is not a poor country.
Maafo stated this in an interview with Joy News, insisting that the economic figures inherited by the new administration of President Akufo-Addo from the immediate past one are not encouraging.
The Senior Minister designate also said Ghana’s budget deficit is hovering at a worrying rate of 8% higher than the 5% expected under the IMF agreement.
He also gave the debt to GDP as 72%, a figure he said can only be suffocating.
The IMF and the World Bank standards says when the debt to GDP is above the 70% threshold, the country is considered to be Highly Indebted Poor Country, HIPC.
Maafo however said despite the high debt profile, Ghana is not HIPC.
“We are extremely, heavily indebted but not poor. The economy is fundamentally very strong. It is the management that has been a problem.”