Kwame Pianim, a renowed Economist, has said the current economic turmoil the country is facing is unprecedented.
According to him, the Finance Minister’s admission that the country is in crises defeats Ghana’s position of being the “shining light for political independence for Africa.”
He says the financial crises which caused the government to restructure its debt through the Domestic Debt Exchange Programme (DDEP) has created so much problems for businesses, leaving people in fear to save their monies at the bank.
“Where did we go wrong because we knew Ghana was supposed to be the shining light for political independence for Africa but the Minister for Finance says we are in deep crises and we have never been in this crisis before,” he indicated.
He explains that the DDEP has eroded the confidence of both the banks and the public since the investment which hitherto yielded positive returns for investors are now becoming a liability for them.
“Banks and insurance companies are supposed to put their monies in bonds for safety but now it is not safe. Banks are being folded up and now people don’t feel safe putting their monies at the bank,” he added.
Dr. Pianim was speaking at the 3Business Quarterly Thought Leadership Programme on TV3 Wednesday, August 9, 2023, when he intimated that the country is focusing so much on revenue mobilisation, a position many countries have been without being able to survive.
He has advised government to “sit up” and ensure there are “revenue streams” where loans taken would be channeled to ensure they don’t become a liability, and also use the loans to support the entire economy.