Checking Ghana’s rising debt way to stabilizing economy - Razia Khan

Checking Ghana’s rising debt way to stabilizing economy - Razia Khan
Source: Ghana | | George Wiafe
Date: 01-05-2015 Time: 03:05:02:pm
Razia Khan talking to Joy Business' George Wiafe

Standard Chartered Africa research boss Razia Khan has maintained that checking Ghana rising debt, could be the way to stabilizing the economy.

Managers of the economy, over the past months have instituted several programmes and policies to halt the country’s  economic decline.

These measures, like the homegrown policies, and the IMF programme have so far failed to do the trick in the immediate to short term.

Speaking to JOYBUSINESS in an interview,  after the StanChart Africa Summit held in Accra, Razah Khan said the public debt which is inching close to 70 percent of GDP is Ghana’s biggest problem now, adding that things could improve greatly if much attention it given to the country’s debt issues.

The country’s public debt hit 76 billion as at December last year according to the Bank of Ghana.

Some have argued that the amount could cross the 70 percent mark, as parliament has approved new loans since the beginning of this year.

The International Monetary Fund has put Ghana on a list of countries that could soon be classified as high debt distress countries.

Razia Khan says it might take a while before, investors react by bringing in capital after Ghana secured a programme with the IMF.  

Some investor funds have been frozen because of uncertainty about the management of the economy, and delays in securing a programme.  

It was expected these funds will come in quickly after the board of the IMF approved Ghana’s programme.

But Razia Khan believes investors currently a difficulty seeing their way clear because there's a lot going on elsewhere in the world economy.

“Yes investors are enthused about Ghana securing an IMF programme, but there is lot of things going on around the world,  like African countries coming under pressure, the dollar in general this year has been strengthening and there are  expectations that  the US  Federal Reserves’ decision to  hike interest  rates could even affect the decision of these investors,” She added.

She noted that it would be misplaced to expect that investors would react immediately, following the signing of the IMF programme with Ghana.