Economist Stephen Adei says incessant borrowing without the capacity to repay is one of the most significant contributors to the country’s economic turmoil.
The former Ghana Revenue Authority (GRA) Board Chairman insists this development is what has become an albatross around President Akufo-Addo’s neck.
“I think the biggest mistake they made is that they borrowed beyond our capacity to service it,” he said.
He made these comments on the sidelines of the Signature Market Pre-launch campaign at the Kwame Nkrumah University of Science and Technology (KNUST).
Prof Adei explained that even though exogenous factors such as the coronavirus pandemic and the Ukraine-Russia war played a role, overborrowing is the final nail that threw it entirely out of gear.
“If you are a country and you borrow beyond your capacity, you will be in trouble, of course, COVID-19 came in, and the Russia-Ukraine [war]. But the reason why things got worse is because of these underlying mistakes they made and they must admit it”, Prof Adei explained.
He told pressmen that if this was not the case, “they won’t be going to IMF.”
“We have to learn and not repeat our mistakes by going on a borrowing spree”, he urged the government.