Borrow from IMF and World Bank to reduce interest cost- Economist to government

Government has been urged once again to seek for financial support from the International Monetary Fund and the World Bank to support the economic recovery from Covid-19.

According to the Head of Finance at Valley View University, Dr Williams Peprah, funding from the Bretton Wood institution is cheaper and will help stabilize the economy.

Making this statement head of the budget review which will be held this Thursday 27th July, 2021, Dr. Preprah said interest cost will also go down if the country seeks for funding from the multilateral institutions, rather than borrowing from the commercial market.

“It’s a major concern for every government how they measure their debt. What I noticed when the budget was read was that government was trying to make sure that it has a good balance of the debt; 50% from domestic market and 50% from external.

“When government is successful in doing that, sometimes it’s good for the country. From the last monetary policy report by the Bank of Ghana, we’re noticed that debt was gradually increasing and that is a major threat to our economy”, he pointed out.

“What I have been advising is to go to IMF and World Bank for some funds. In that case, it becomes a cheaper source of funds. Our interest rate will not increase, our reserves will rather be boosted because of high exports as well as a stabilize economy,” he said.

Ghana’s debt up significantly by ¢27.8bn to ¢332.4bn

Ghana’s public debt stock shot up by ¢27.8 billion in April 2021 and May 2021 to ¢332.4 billion, according to the Bank of Ghana.

This is equivalent to $57.9 billion, about 76.66% of Gross Domestic Product.

In March 2021, the total debt stock stood at ¢304.6 billion, and the significant increase in the debt stock was due to the $3 billion Eurobond raised in March 2021 as well as the huge borrowing on the domestic market.
Source: myjoyonline.com

Why do we owe that much the rate at which we are borrowing de3 … I bet you the future doesn’t look bright at all… I mean what are these government companies doing to generate resources?

Countries do borrow from World :earth_americas: Bank and International Monetary fund yet still they pay their interest coupled with the principal because they have untilized the money.
But in the case of Ghana, when the leaders go for the money, they only use it on irrelevant things which doesn’t generate any profit. So the problem is not borrowing from the US government or the Chinese government. Whether IMF or World Bank they will still pay interest be it less or more.

Ah not again, IMF recently said the economy of Ghana is doing well despite covid so how can we go begging for money. The valley view university’s head of finance did speak well at all. Interest cost will not be reduced if our goal as a country is to borrow from world bank and IMF to solve our economic problems

Is this not the job of Dr. Bawumia? How come a valley view lecturer is giving economic advice to government whiles he busying himself with tech?