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President Mahama addressing party supporters President Mahama addressing party supporters

Our public debt is not highly distressed-Mahama

Written by  Oct 14, 2015
The President, His Excellency John Dramani Mahama has refuted claims by the Minority in Parliament over what they described as an astronomical increase current national debt stock. It could be recalled that, the Minority side in Ghana legislature house accused the NDC government of accumulating more debt, a situation the Minority’s side indicated has placed Ghana as a highly distressed economy. However the president has described the Minority’s position as an unfair representation of the true situation. President Mahama was addressing party supporters in the Central region as part of his transforming and changing lives campaign tour. He explained that, the reason why our debt has shot up astronomically is because government added all outstanding debt owed by state enterprises were added to our current debt stock at the instruction of the IMF as part of their conditions. He said: “all the debts of the state owned enterprises have been added to the public debt, so the debt of GHAPOHA and the rest have been added, it didn’t use to be so. Formerly you calculate the debt the country owes separately from the state owned enterprises, but now in the agreement of the IMF, they’ve added all the state owned enterprises debts to the public debt except GNPC.” He added: “that is why the public debt [stock] as at the end of July stood at  62.7% but that is not highly distressed. So we presented the public debt management plan to the IMF and we agreed together. And what we are doing is, we are putting GHAPOHA and all of them to be able to borrow on their balance sheets so that in future they don’t continue to pile their debts on the government’s debt.”  
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