Minister of State in charge of Government Communications, Felix Kwakye Ofosu has outlined the country's escalating debt servicing obligations, revealing the extent of the financial burden the government faces.
According to him, on 2nd January, Ghana made a debt servicing payment of $364 million, but this is only the beginning.
By the end of February, the country will need to pay a staggering $6.1 billion, and next year, the debt servicing figure is projected to rise to an eye-watering $180 billion. "This is for a country whose budget is slightly above $200 billion," Kwakye Ofosu explained, emphasizing that a substantial portion of national revenues will be used to service these debts, leaving limited room for any other expenditure.
The Minister-designate painted a grim picture, saying, "What it means is that all the taxes you and I pay, and everything else that we do in this country, that goes into our budgets, all of it will be used to pay debt servicing." The country's debt default and deferral period have come to an end, and failing to meet these payments could result in catastrophic consequences for the economy. "If we don't do it, we will default again.
