The Akufo-Addo administration has managed the public sector debt far better than what the previous Mahama administration did, Vice President Dr Mahamudu Bawumia, has said.
He stated that although the debt has increased under this administration, the factors that resulted in the upward trend were not the doing of the New Patriotic Party (NPP) administration.
Dr Bawumia revealed that the NDC signed power purchase agreement which the country did not need but the country is paying about 1billion dollars annually for it.
Similarly, he said, the cost involved in the cleanup exercise undertaken in the banking sector, as well as the effect of the coronavirus pandemic have all resulted in the increase in the debt situation for the country.
“We are managing the debt better. Of course the debt stock has increased for a number of reasons and we cannot hide from it .
“When the NDC left office they had negotiated a power purchase arrangement and 60 per cent of what they had negotiated we didn’t need . So we were left with excess capacity charges close to 1billion dollars a year from power we don’t use.
“The financial sector bailout has cost this country about 21 billion, you don’t have the choice to pay the depositors
“The debt stock yes in nominal terms has gone up , we are managing,” he told Asempa FM Wednesday September 30.
Ghana’s public debt stands at Ghs 263 billion.
By Laud Nartey|3news.com|Ghana