A banking consultant, Dr. Richmond Atuahene, has proposed the inclusion of a debt limit or cap through a constitutional amendment.
He argued that this step is essential to maintain economic stability and effectively manage debt, thereby preventing a financial crisis, especially in the aftermath of an IMF program.
Regarding Ghana’s concerning debt levels, which have led the country to request its 17th bailout program from the IMF, Dr. Atuahene emphasized the need for Ghana to implement rigorous measures to increase domestic revenue.
He also recommended innovative approaches to broaden the tax base and reduce excessive borrowing.
“To prevent future debt crisis, the government and the legislature must ensure that the 1992 Constitution is duly amended and the Debt-to-GDP Ratio is explicitly enshrined,” the Banking Consultant suggested.
He continued, “To build back better post-IMF, the country would require aggressive agricultural development strategies with the private sector, over the medium-term, with view to accelerate the modernization of agriculture and ensure its linkage with industry through the application of science, technology and innovation.”
Meanwhile, the debt ceiling represents a cap on the overall borrowing capacity of the government.
The 12th edition of the Ghana Economic Forum occurs during one of the most challenging macroeconomic periods in over a decade. This situation is characterized by Ghana’s utilization of a $3 billion Extended Credit Facility (ECF) from the International Monetary Fund and the consequences of the Domestic Debt Exchange Programme (DDEP).
The theme for this year’s forum is; “Build back better: IMF support, strategies to build a sustainable economy and dynamic business environment.”
The GEF convened a gathering of financial sector experts and influential thinkers to deliberate on pivotal subjects influencing the nation’s economic terrain.