Audio By Carbonatix
Economics Professor and Director at the Institute of Statistical, Social and Economics Research (ISSER), Prof. Peter Quartey, says the suspension of external debt repayment is advantageous to the country.
Speaking on Joy FM’s Super Morning Show on Tuesday, he noted that the suspension would provide a temporary respite for the nation and enable Ghana to use the money intended to service her debt for other purposes.
“Well, I must say that this is a temporary respite for us. The money that we will use to pay our debts we would have the leverage to use that money to do other things for now. So, it’s a temporary relief for us.”
Another benefit that he highlighted was that it would relieve the local currency of some pressure.
This, he explained, will occur because the foreign currency allocated for debt repayment will be directed toward critical sectors such as oil marketing companies or other institutions that require foreign exchange.
Peter Quartey added that the suspension was intended to buy Ghana some time and provide an opportunity for more comprehensive debt restructuring negotiations with internal creditors.
Despite the aforementioned potential benefits enlisted by Prof. Quartey, he cautioned Ghanaians to be mindful that the suspension did not mean "our debt had been forgiven."
He advised the government to use whatever relief or resources they would attain judiciously since repayment of the debt was inevitable.
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