Excessive borrowing cause of Ghana’s economic woes – Alan K

The leader of the Movement for Change group, Alan John Kwadwo Kyeremanten has diagnosed excessive borrowing from external creditors as the major cause of the current economic problems facing the country.

Addressing a meeting with the leadership of the Trades Union Congress (TUC) in Accra, the former Trades Minister said the country is currently in debt crisis because of the decision to sell bonds on the European markets.

“We thought once our bonds were being patronised, so we could borrow more and that’s the cause of our crisis now…we should have been fast about that…,” he said.

Alan Kyeremanten who is currently on a mission to convince Ghanaian voters to consider his Afafranto Movement as the viable alternative to transforming Ghana for better added that the country has more than enough potential to become a first class nation if we manage our resources well.

He told the leadership of the TUC in a 30-minute presentation that he would put in place several policies to make the business community smile when elected President. This is due to his belief that the private sector is still the engine for the growth of the country.

“I will establish a fixed exchange rate for specified periods for the calculation of import duties, in order to reduce the high level of imported inflation in the economy. I will also introduce measures to reduce food price inflation by boosting food production and reducing costs along the food supply chain (production, transportation, storage, preservation, and marketing)…,” he pledged.

Mr Kyeremanten also promised to work hard to reduce inflation when he comes to power arguing that Ghana’s economy will be much more stable when inflation is controlled.

“I will review the inflation targeting policy of the Bank of Ghana (BoG) to ensure that the policy rate does not lead to prohibitive interest rates. I will also strictly enforce the 5% ceiling on monetary financing of the budget in the Bank of Ghana Act to reduce the associated demand pressures that fuel inflation…,” he added.