Lawyer Amaliba has stated that the first step to halting Ghana’s rising public debt stock is to vote out the New Patriotic Party (NPP) in this year’s election. According to Amaliba, the NPP administration is not acting in the interest of Ghanaians, but rather prioritizing their own interests.
Amaliba made these comments on TV3’s Big Issue on Friday, July 27, while discussing Ghana’s public debt stock, which stood at GH¢742 billion (US$50.9 billion) as of June 2024. The Finance Minister, Dr. Mohammed Amin Adam, presented the mid-year budget review on Tuesday, July 24, revealing that the debt stock represents 70.6% of the Gross Domestic Product (GDP).
The debt stock consists of external debt of GH¢452.0 billion and domestic debt of GH¢290.0 billion, representing 60.9% and 39.1% of the total debt stock, respectively. Dr. Amin Adam assured Ghanaians that the government is living within its budget, highlighting the successful conclusion of the second review of the Extended Credit Facility with the International Monetary Fund (IMF).
The IMF review led to the disbursement of the 3rd tranche of $360 million, bringing the total disbursement to approximately $1.6 billion. Dr. Amin Adam also mentioned the completion of the Debt Restructuring program with the Official Creditor Committee (OCC), covering $5.1 billion, resulting in approximately $2.8 billion of debt relief.
Additionally, negotiations with Eurobond holders have been concluded, covering $13.1 billion, leading to a cancellation of $4.7 billion of debt and providing debt service relief of $4.4 billion between 2023 and 2026. Amaliba emphasized that addressing the sectors where Ghana imports heavily and uses hard currencies is crucial in reducing the debt burden, and this can only be achieved by voting out the NPP.
