[ 2016-08-10 ]

Seth Terkper, Minister of Finance

Rejection of Ghana on foreign market due to borrowing – Analyst
Ghana’s failure to receive favourable response
on the international market for its 700
million-dollar eurobond has been attributed to
what financial experts say is the government’s
high appetite for borrowing.

The Finance Ministry in early August halted
government’s decision to issue a 700
million-dollar eurobond due to unfavourable market
conditions.

But this, according to the Head of research at
Dalex Finance, Joe Jackson, is due to the
government’s high appetite for borrowing, noting
the Ghana’s debt to Gross Domestic Product ratio
which currently stands at 63 per cent deters
foreign investors.

“We have borrowed so much and one of the
reasons why the foreign markets don’t find us
attractive is because we have borrowed so much and
because of corruption, all the money we have
sourced is being wasted,” he argued.

He said that though Ghana at the moment we cannot
do without borrowing, it we must significantly
reduce its borrowing. “Our situation is dire and
we must accept that as a country, we cannot do all
the things that we wish to do,” he said.

He observed that government’s fiscal discipline
is out of gear even under the IMF programme,
adding “We need to cut back our expenditure and
get a breather. We went to the IMF for the
breather but that problem still persist and we are
still borrowing. We cannot spend our way out of
our problems, he lamented.

Source - 3news.com

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