Saturday, 13 April

Instead of blaming economic mismanagement, Ofori-Atta is faulting Ghana's creditors for debt burden – Hanke

Prof Steve Hanke

Ghana’s finance minister must blame his country's mismanagement of the economy for the gold-producing country's debt burden instead of offloading that blame on the West African country’s creditors, US Professor of Economics, Steve Hanke has said.

Hanke's comment is in response Mr Ken Ofori-Atta's recent expresion of disappointment with foreign lenders for being too slow to accede to Ghana’s external debt restructuring programme

The International Monetary Fund's board approval for a US$3-billion external credit facility for the oil-producing country, is contingent upon the granting of the necessary financing assurances by China and the Paris Club, to whom Ghana owes over US$5 billion.

Already, Ghana has gone through a domestic debt  exchange programme and passed some three revenue bills that have been signed into law by President Nana Akufo-Addo, as part of measures to clinch the IMF deal.

The necessary financing assurances from Ghana’s external creditors is the only hurdle to be cleared so the country can secure the deal.

The IMF’s Africa dept head, Abebe Selassie, demands a "significant increase" from foreign lenders for the colossal debts of 33 African countries. Selassie blames the creditors, but what about the debtors? Why'd they take on mountains of debt to start with?

— Steve Hanke (@steve_hanke) April 18, 2023

Responding to Mr Ofori-Atta's exasperation,Prof Hanke tweeted: “As 33 African countries suffer from record debt burden, Ghana’s Finance Minister, Ken Ofori-Atta, is disappointed that foreign lenders had been ‘slow to act”.

“Instead of recognising mismanagement, he is blaming creditors for Ghana’s debt burden”, the harsh critic of Ghana’s economic managers tweeted.

As 33 African countries suffer from record debt burdens, Ghana’s finance minister, Ken Ofori-Atta, is disappointed that foreign lenders had been 'slow to act.' Instead of recognizing MISMANAGEMENT, he's blaming the CREDITORS for Ghana's debt burden.

— Steve Hanke (@steve_hanke) April 18, 2023