Audio By Carbonatix
Rating agency FITCH is warning that Ghana would end 2014 with its public debt going up substantially in relation to the value of the economy.
In the agency's new report on the budget, FITCH said that the public debt would increase to 54 percent by end of next year from the current 49 percent to GDP .
The agency is also warning that government would spend more than projected 9 billion Ghana cedis by the end of next year.
The Bank of Ghana as at August 2013 puts the public debt at almost 44 billion Ghana cedis. But with FITCHs' warning it means that Ghana's debt would go up to levels that analysts say might be unsustainable.
The situation may force the country to opt for debt relief to help manage the situation. Economist with Databank research Samson Akligoh tells JOYBUSINESS the development calls for tougher actions to save the situation.
The World Bank recently Ranked Ghana as the fourth country in Africa which has the highest public debt in relation the total value of the economy. Government for instance in the 2014 budget is projecting it will spend 6.4 billion payment for interest on loans secured.
Meanwhile government says it is surprised by FITCH 's comments because they are already working to address concerns raised about government's expenses and the public debt. Speaking at a Post Budget forum on the Budget organised IFEJ ,Deputy Minister of Finance Ato Forson says they would soon come out with a detailed responds to all the issues raised by FITCH soon.
Latest Stories
-
Joy Sports launches two dedicated 2026 World Cup build-up shows
3 minutes -
Pope says he will ‘speak out loud’ against war after Trump attack
18 minutes -
EcoGreen Oases Legacy initiative tackles unemployment and climate challenges with Green Skills Training in Tamale
21 minutes -
Britney Spears goes into rehab after driving under the influence arrest
22 minutes -
Mrs Constance Maku Quaynor Ruttmern aka Auntie Maku
29 minutes -
Pastor arrested over alleged attempt to bury five-month-old baby alive at Abofrem
41 minutes -
Titus Glover accuses NDC of U-turn on LGBTQ+ bill after winning power
43 minutes -
Chaos where there should be Gold: The Duffours, Bogoso & Katanomics
54 minutes -
‘Independence is not a luxury; it is a necessity’ – Amanda Clinton warns against subordinating Special Prosecutor
1 hour -
Prudential Bank urges suppliers to embrace efficiency, ethics and trust at 2026 Conference
1 hour -
Police begin manhunt for killers of Berekum Chelsea player after highway attack
1 hour -
85% of Ghanaians dissatisfied with government’s LGBTQ+ stance – APL poll
1 hour -
The infrastructure decision every growing business in Africa will face
1 hour -
Police launch manhunt after armed robbers kill Berekum Chelsea player on highway
1 hour -
Oscar Naasei earns high rating as Granada edge Cultural Leonesa
1 hour