Sinking Fund Balance Dwindles to $64,000 and GHS143,000 - Mahama

Parliament House/Accra, Ghana - 27 Feb, 2025 -  President John Dramani Mahama dropped a bombshell in his first State of the Nation Address, revealing that Ghana's Sinking Fund has been left virtually empty, with a meager $64,000 and GHS143,000, shattering claims of a robust economy inherited from the previous administration.

President Mahama's first State of the Nation Address revealed a bleak outlook for Ghana's economy, which he inherited from his predecessor.

According to him, the country is grappling with a staggering debt burden, requiring GHS280 billion for debt servicing over the next four years. This breaks down into GHS150 billion for domestic debt and GHS130 billion for external debt servicing.

Mahama cautioned that rectifying the economic mismanagement of the past will demand significant effort and sacrifice. His address foreshadows a difficult period ahead as Ghana strives to overcome its economic challenges. The country's economic woes are compounded by factors such as high inflation, which peaked above 50% in 2022, and a significant trade deficit.

“There have been claims that buffers were left for ongoing debt repayments in 2025. The Sinking Fund shows a balance of only $64,000 in the dollar account and GHS143,000 in the Cedi account,” Mahama revealed.

“The repercussions of the accumulation and the economic mismanagement will require extensive work and sacrifices to repair,” he stated.

“In the next four years, our debt servicing will amount to GHS280 billion and comprises GHS150 billion for domestic debt and GHS130 billion in external debt servicing,” Mahama added.

Source: Lead News Online