The Minority in Parliament has clashed with President John Dramani Mahama over his claims about Ghana’s debt situation, accusing him of propagating misinformation.
Former Finance Minister Dr. Mohammed Amin Adam has set the record straight, providing a detailed account of the country’s debt management strategy and its successes.
According to Dr. Adam, President Mahama’s claim that Ghana’s debt service obligations for the next four years will amount to GHS280 billion is misleading.
Dr. Adam explained that every government provides for debt servicing obligations, and President Mahama is aware of this.
He emphasized that the previous administration had successfully managed Ghana’s debt levels, reducing them from 78% of GDP to 72% of GDP.
Addressing a press conference in Parliament on Monday, Dr. Adam highlighted the significant achievements of the previous administration’s debt management strategy, including the rescheduling of debt service with official bilateral creditors.
This agreement, which was reached in January 2024, entails the rescheduling of all debt service, including principal and interest, falling due between December 2023 and December 2026. As a result, no debt service under bilateral debt will be paid until after 2026.
The former Finance Minister also noted that the debt service relief from this negotiation stands at $2.8 billion, which the Government of Ghana would have paid, but now stands as savings to the country.
He emphasized that President Mahama’s administration did not play any role in this achievement, despite the President’s claims to the contrary.
Dr. Adam also addressed President Mahama’s criticism of the previous administration’s handling of energy sector debt.
He explained that the energy sector debt at the beginning of 2017 stood at $2.5 billion, but the previous administration ensured that this debt did not balloon to $12 billion, as predicted.
Instead, the administration spent $6.2 billion over seven years to keep the lights on, with 2024 expenditure on energy alone standing at $1.4 billion.
The Minority’s response to President Mahama’s claims highlights the importance of accurate and comprehensive information in assessing Ghana’s debt situation.
-BY Issah Olegor
