05.04.2005 Business & Finance

Government will keep lid on debt

Government will keep lid on debt
LISTEN APR 5, 2005

Accra, April 5, GNA - Government is adopting prudent financial management measures to ensure that the country does not slip back into debt, the Minister of Finance Mr. Kwadwo Baah-Wiredu said on Tuesday. Speaking at a joint World Bank and International Monetary Fund workshop on debt sustainability in Low Income Countries, Mr. Baah-Wiredu said good loan appraisal systems, access to high concessional loans and break in the reliance on huge domestic borrowing put the country in good stead to avoid falling back into debt. "We are doing everything possible to avoid falling back into the trap," he said. The workshop examined proposals for a new operational framework for debt sustainability in LICs. Mr Baah-Wiredu said the government would strive to preserve debt by keeping new borrowings at levels that lend themselves to easy payment and also ensure that monies go to enhance the needs of the country. "We have also stepped up loan appraisal systems and with prudent management practices, the country can attain its goal," he said. He lauded the benefits that the country had received from accessing the Highly Indebted Poor Country Initiative, saying it had directed resources to poverty reduction to enhance growth. Mr Mats. Karlsson, World Bank Country Director said debt sustainability did not mean zero debt but how the debt the country incurred was well managed so as to avoid a negative impact on the population.

ModernGhana Links

Join our Newsletter