The Deputy Ranking Member on the Communications Committee of Parliament, Sam George has criticised the government for suspending interest payments on selected external debts as part of efforts to bring Ghana's debts to a sustainable level so as to secure an International Monetary Fund (IMF) deal.
The Finance Ministry on Monday announced that it was suspending external debt payments towards getting a deal with the IMF as part of government's debt restructuring efforts.
But reacting to the development in an interview with JoyNews’ Kweku Asante, the Ningo Prampram MP said the development is worrying.
According to him, Ghana's image internationally will be battered by the latest decision by government to suspend payments on international debts.
“It is a sad development and we are disappointed in the management of the economy…it is a situation we find ourselves in right now, where government’s poor economic management has led us to where we are now. It means that we have no credibility in the international market.
“Normally, you go to the IMF for policy credibility, you have just announced a Staff Level Agreement (SLA) with the IMF and then you are defaulting on your external debt.”
According to him, the announcement to suspend external debt interest payments is late, adding that government has already been defaulting on some loan agreements since October.
He also warned that just as local stakeholders have rejected the domestic debt restructuring, external lenders will do the same and may fight to take over Ghana's properties outside the country.
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