The World Bank Country Director for Ghana, Pierre Frank Laporte says poorer countries need to borrow in other to develop.
His assertion follows numerous debates between the governing New Patriotic Party (NPP) and the opposition National Democratic Congress (NDC) on which government has borrowed more and its impact of the country.
With Ghana’s GDP ratio standing at 76.7%, the Country Director disclosed that Ghana isn’t borrowing too much to be criticized as moving into a debt distress country.
Mr. Laporte advised the government to pay critical attention to macroeconomic stability in strategizing Ghana’s expenditure and earnings to prevent the country from over-borrowing.
“When you have macro-economic stability, you don’t only protect yourself, in terms of overspending it also allows in maintaining debt loan, putting Ghana on the international market with a positive perception,” he said.
In an interview with JoyNews’ George Wiafe, Mr. Laporte stated that when the international market looks favourable to Ghana, they are more likely to invest in it.
“They will say this is a country with good macro stability, the economy is managed well, inflation is coming down and deficits are under control, unemployment is fairly low, domestic mobilization is strong,” he said.
He, however, urged countries like Ghana to put in place checks and balances when it comes to borrowing so as to ensure that macro stability is attained.
