Ghana risks economic collapse if debt servicing fails – Kwakye Ofosu

Spokesperson for President John Dramani Mahama and Minister-designate for Government Communications, Felix Kwakye Ofosu, has sounded the alarm on the nation’s alarming debt servicing obligations.

He described the daunting financial situation that requires almost all national revenue to be dedicated to debt repayment.

“Our economy is at a point where nearly everything mobilized will be used to service debt,” Kwakye Ofosu explained on TV3’s Key Point monitored by MyNewsGh.

He outlined the overwhelming fiscal burden, noting that the next year’s debt servicing costs will exceed most of the national budget.

In January alone, the government made significant payments to service existing debts, and by February, additional billions will be required. “This is a country where nearly every tax and revenue collected risks being swallowed up by debt repayment,” he stressed.

He attributed the current crisis to reckless borrowing by the previous administration, saying, “The previous government was too happy to borrow but couldn’t pay.

They left us with obligations that have now become a near-existential threat to the economy.”

Felix Kwakye Ofosu underscored the high stakes of the situation. “If we fail to service these debts, we risk defaulting again, which would be catastrophic for the economy as we know it.

“The Finance Minister is under immense pressure to ensure we don’t slip into economic ruin.”

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