The running mate of the New Patriotic Party Dr. Mahamudu Bawumia has stated that the governing National Democratic Congress has borrowed some 39 billion dollars in the last eight years that it has been in power.
According to the former Deputy Bank of Ghana governor, anytime he mentions the amount borrowed under the NDC government “they either get confused or pretend to get confused.”
Delivering a lecture themed “the state of the Ghanaian economy, a foundation of concrete or straw” the Economist stated some 66% of Ghana’s debt, GH¢69 billion of it, has been accumulated under the presidency of John Dramani Mahama.
Dr. Bawumia said with this major increase in debt, Ghana’s debt to GDP ratio has increased from 32% in 2008 to 72% at the end of 2015, adding “the real effects of the reckless borrowing undertaken in the last seven years is seen in the magnitude of interest payments.”
Dr. Bawumia delivering the lecture Thursday said “the Ghana cedi has recently obtained the dubious distinction of being one of the worst performing currencies” adding “The cedi has depreciated from some GH¢1.2 to the dollar in 2009 to GH¢ 3.95 to the dollar currently.”
He said the performance of the cedi in the last eight years is in sharp contrast to the remarkable stability of the cedi during the eight years of the erstwhile NPP government under President John Agyekum Kufuor.
Dr. Bawumia stated that due to the economic mismanagement of the of NDC government the energy sector has been badly affected since the Mills/Mahama government took over the reins of government in 2009.
“Today, the energy sector faces an unprecedented financial crisis in Ghana’s history…the cost of electricity to industry has been alarmingly high, and this has led to the collapse of some factories”