Debt Choked NPP Govt Negotiating Another US$2billion Loan …Bright Simons

IMANI Africa’s Vice President in charge of Research, Mr. Bright Simons, has revealed that the debt-choked Akufo-Addo government is quietly negotiating more loans, with the latest totaling US$ 2 billion.

In a tweet Tuesday, Mr. Simons reveals: “Big Bamba Analysis Part 2: Govt of Ghana has not stopped borrowing. It is talking about $2billion now,” he tweeted.

Ghana’s debt crossed Ghc350billion in 2022 which constitutes over 84% of its GDP. Over Ghc230 billion was piled on by the Akufo-Addo government alone which had inherited a legacy debt of Ghc120billion in 2017.

Legacy debt is debt accumulated from the First Republic, which is the Nkrumah government.

Because of the country’s huge debt, investors have been wary about lending to Ghana and would only do so at very high-interest rates.

Therefore, if the Akufo-Addo government is really seeking to borrow at this time, it means the government is not only going to add more than Ghc15billion to the already ballooning debt stock at a rate of Ghc7.52 to US$1. And this is minus the huge interest the country will pay later.

“That money will be many times more expensive than IMF’s with plenty fees going to all manner of “Advisors” Mr. Simons wrote.

The “Advisors” he references include Databank, a private company owned by Finance Minister, Ken Ofori-Atta, and Black Star brokerage a company owned by Minister of State at the Finance Ministry, Charles Adu Boahen.

By a criminal conflict of interest arrangement, Ofori-Atta appointed his private company as a so-called “bond market advisor” to his Ministry along with Adu Boahen’s private company.

Many have pointed out that this criminal arrangement of cream-offs is what is probably driving Ofori-Atta’s insatiable appetite for borrowing – because anytime he borrows, his private company makes money.

Mr. Simons advises that the country would be better off going to the IMF for a bailout than resort to such expensive borrowing.

“IMF is not a cure but it is a cheaper headache,” he tweeted.