Seth Tekper, Minister of Finance has dismissed reports that Ghana has been officially declared a Highly Indebted Poor Country (HIPC).
Speaking in an interview with Kwami Sefa Kayi on Peace FM's 'Kokrokoo', Mr. Tekper stated emphatically that Ghana is not HIPC because Ghana has moved from a developing country to a lower middle income nation.
He explained the HIPC programme to the nation, saying “HIPC is a programme that was put in place by the World Bank and the IMF for countries that are in distress and supported by other multi-lateral institutions. And so that’s how come Ghana had to apply for the HIPC programme when we declared HIPC. That’s what it means…So, just as you enter into an IMF programme or you go into, for example, you enter into a guarantee programme as we’re doing with the World Bank for the Sankofa fields and the rest. That is why the country has to declare HIPC.
“There’s a programme but you can do your own re-financing because HIPC comes with re-financing and some debt forgiveness which as a lower middle income country, for now, we may not get that easily. You know that’s the other difference. We have moved from becoming a developing country into a lower middle income country.”
To him, Ghana's debt ratio has also significantly improved.
Seth Tekper further stated that his outfit and the government are putting 'visible' developmental projects in place to enhance the progress of the economy.
“The fact that you become a lower middle income country does not mean that all of sudden everywhere in Ghana will look rosy. But you can also see some visible changes as a result of your potential. For example, you can see visible development that is taking place. You have probably more resources to do roads and the rest. This is where the GETFUNDS, this is where the NHIA…become important because as we increase the revenue and the revenue to these programmes come in; these are the programmes that you also use to tackle poverty so that you can bring everybody along. And this is what we call the inclusive growth.
“So, we have to adopt sectorial as well as national policies and accept the world is looking as a middle income country. We have to just accept it and then continue to develop programmes that will make us live that reality.”
Meanwhile, data from the Bank of Ghana indicate that Ghana is officially classified as a Highly Indebted Poor Country (HIPC).
BOG new data shows that the country's debt now stands at about 71 percent and according to World Bank benchmark, if a country's debt-to-GDP ratio exceeds 70 percent debt mark, the country falls into the HIPC brackets. |
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