The former Finance Minister, Mohammed Amin Adam has dismissed claims by President John Mahama that the Akufo-Addo administration left behind a massive debt, plunging the country into crisis.

According to Dr Amin, President Mahama’s assertions do not reflect the true state of the economy inherited from the Akufo-Addo government.

His response follows President Mahama’s first State of the Nation Address (SONA) under his second term on Thursday, February 27, where he described the economy as being in crisis.

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President Mahama claimed that at the end of the Akufo-Addo administration, Ghana’s debt had reached GH₵721 billion, with state-owned enterprises such as the Electricity Company of Ghana (ECG) owing GH₵68 billion and COCOBOD saddled with GH₵32 billion in debt.

The President further criticised Dr Amin’s handling of the economy, comparing its condition to a patient in an intensive care unit.

• Read also: ‘Ghana’s debt soars to ¢721bn, ECG owes ¢68bn, COCOBOD ¢32.5bn’, says Mahama

However, speaking on JoyNews’ The Pulse on Thursday, February 27, Dr Amin argued that the health of an economy cannot be assessed solely based on debt levels.

“You have liabilities and you have assets and so a basic accountant knows this basic fact that when you assess the performance of a company, you look at debts, liabilities and then you look at assets.”

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“If the president was only talking about debts, then the equation is incomplete and that will be intellectual dishonesty,” he explained.

Dr Amin further attributed Ghana’s debt situation to external factors, including the COVID-19 pandemic and the Russia-Ukraine war, which significantly impacted global economies.

“Even the IMF and the World Bank have reiterated the effect of Covid and the war in Ukraine. So if you want to look at how we came by these debts, the context is very clear,” he stated.

He noted that simply mentioning debt figures was insufficient, as debt sustainability should be measured in relation to GDP.

The former Finance Minister added that while the Akufo-Addo government borrowed, it also expanded Ghana’s GDP by $20 billion over seven years.

“Twenty billion dollars is no easy achievement that you have borrowed and you have added to the size of the GDP over seven years.

“It means that we have used the money well, we have used it productively and we have used it to build the economy,” Dr Amin asserted.