The Minority in Parliament has provided a detailed analysis of Ghana’s debt trajectory from 2009 to 2024, defending the economic management of the New Patriotic Party (NPP) while criticizing the National Democratic Congress (NDC) for excessive borrowing during their tenure.
In a press briefing on the 2025 budget statement presented by former Finance Minister Dr. Amin Adams, the Minority highlighted the stark contrast in debt accumulation under both administrations.
They emphasized that after the HIPC completion and external debt relief, Ghana saw a significant reduction in its public debt-to-GDP ratio.
However, the Minority pointed out that public debt, which stood at $8.07 billion in 2008, surged to $29.2 billion by 2016—marking an increase of over 261%, or about 32.75% annually under the NDC.
On the other hand, they noted that under the NPP, despite global economic challenges, the pace of debt accumulation has slowed.
The public debt rose from $29.2 billion in 2016 to $52.3 billion by the end of 2023 and was reduced to $49.3 billion following a debt restructuring program.
This represents a 68.83% increase over the period, or an average annual increase of about 8.6%, much lower than the NDC’s rate. The Minority argued that this slower growth rate signifies superior economic management by the NPP.
The Minority also criticized the previous NDC administration’s borrowing strategy, particularly highlighting the high interest rates on Eurobonds, such as the 10.75% rate in 2015.
They asserted that such high coupon rates imposed significant financial strain on Ghana’s economy, exacerbating the debt burden.
In summary, the Minority defended the NPP’s approach to managing Ghana’s public debt, contrasting it with what they see as the NDC’s unsustainable borrowing practices, particularly in terms of Eurobond interest rates and the overall pace of debt accumulation.
