Ghana is starting a debt exchange scheme, according to Finance Minister Ken Ofori-Atta, to ensure that debt levels are reduced to manageable levels.
The Minister stated that this is being done to ensure that the nation takes action to ensure the restoration of macroeconomic stability in an update on the economy.
The debt sustainability analysis (DSA), according to him, “demonstrated without a doubt that Ghana’s public debt is unsustainable, and the Government may not be able to completely discharge its debt in the future if no action is taken.”
“While our overall public debt stock, including that of State-Owned Enterprises and all, surpasses 100% of our GDP, debt servicing is currently consuming more than half of total government income and about 70% of tax revenues. Because of this, we are announcing the debt exchange today, which will aid in restoring our ability to pay off debt “Added he.