Ghana is HIPC again – ISSER Update: 24 - Nov - 2014

With a 60.8 per cent debt to Gross Domestic Product (GDP) ratio Ghana has returned to the Highly Indebted Poor Country (HIPC) regime, an Economist with the University of Ghana and the Institute of Statistical Social and Economic Research [ISSER] has said.
Prof Peter Quartey said any rate above 60 percent automatically puts a country into a HIPC category, stressing, the situation would
become worse if the already acquired loans are not put into any productive use. "If you contract a facility and consume [it] or use it to pay wages and salaries and the rest
that is where the danger starts looming, because we are not able to repay the loan and that can have very dire consequences on the economy," he told Joy News' Francis Abban in an interview.
Asked if the current debt profile puts the country into the HIPC category, Prof Peter Quartey said: It [60.8% of GDP] puts us in the
Highly Indebted category.
Any rate above 60 per cent puts you in a HIPC category," he stated emphatically. He was however quick to add that the country does not need an IMF bailout but rather be meticulous in how and what it spends the loans on.
The Finance Minister Seth Terkper late last week announced the country's debt profile during his presentation of the 2015 Budget
statement. “Ghana’s public debt stock as a percentage of GDP has been rising over the years. It
increased from 36.3 percent in 2009 to 48.03 percent in 2012 and further to 55.53 percent in 2013.
“As at end of September 2014, the debt stock stood at 60.8 percent, largely on account of increase in external net disbursements for
infrastructure projects and net domestic issuance, and the depreciation of the cedi.
“The provisional public debt stock as at end September 2014,” the minister noted, “stood
at GH¢69,705.90 million (US$21,733.51 million).” Speaking to Joy News, the ISSER official is praying the loans accrued would not go into paying salaries.
He hoped the loans secured would go into productive investment.
Ghana declared itself HIPC in 2001 when its debts became largely unsustainable. The declaration led to the country benefitting from
a huge windfall with donors forgiving the then Kufuor administration the debts incurred over the years. However, years of borrowing means the country has crawled back into the HIPC
category.
Joy Business' George Wiafe reported the IMF as saying the country's debt may be hitting a 70
per cent mark by close of the financial year. At the moment, the country pays a little over
9billion cedis as interest on loans, Wiafe reported.
He said the country's debt portfolio may force the rating agencies to react. He explained the rating agencies may tell investment partners to be careful lending to Ghana because with such a debt profile it would be risky granting loans to a country which may not have the potential to pay back.
At best, the country would be forced to borrow at an extremely higher rate than it would if it was not highly indebted.

2015 Budget Shows NDC Has Created A Fiscal Mess But Has No Clue How To Deal With It - Bawumia Updated: 23 -Nov -2014

“ The 2015 budget demonstrates one thing for sure . The NDC government has created a fiscal
mess after 6 years in office but has no clue how to deal with it . ”
These were the comments of Dr . Mahamudu Bawumia, 2016 Vice Presidential Candidate of the NPP , when he met the UK Branch of the
Young Executives Forum in Milton Keynes on Saturday. Dr . Bawumia , who thrilled the audience with
his remarkable insight on the Ghanaian economy, used the opportunity to do an elaborate review on the 2015 Budget
presented by the John Mahama government a few days ago.
“ The government ’s focus is on raising revenue to hide the fiscal indiscipline . However, it is
clearly more of an expenditure
mismanagement problem . The budget does not address expenditure review and re- composition and measures to ensure fiscal discipline, but
rather focuses on the revenue side (raising more taxes ), clearly being insensitive to the population and taxing them to hide inefficiencies . There is a saying that “ if all you
have is a hammer everything begins to look like a nail!” This is so appropriate in the case of this NDC Government, “ he said .
Dr. Bawumia used the infamous Petroleum Tax to explain how the government was totally lost
in its handling of the current economic crisis.
“ This Special Tax on petroleum products is bound to also increase the already high cost of doing business in the country. At the time
when many businesses are having to pay for diesel to run generators as a result of load - shedding, they are being asked to pay more
taxes on fuel . This would increase the cost of production .
We strongly believe that that this tax measure is unwarranted. If the deep seated waste and reported corruption in payroll administration
is corrected swiftly, enough savings could accrue to the budget and this tax measure could have been avoided . If the leakages are
not plugged, then no amount of tax increases would solve the problem .” , he said.
Dr . Bawumia also touched on the taxes imposed on the financial and real estate sectors as examples to show how the government had totally gotten it wrong in their
approach to correcting the mess they have created.
“ In the 2014 budget the Government pushed through against sound arguments to the
contrary , a VAT on fee - based financial services . The confusion surrounding its implementation resulted in the withdrawal of
the policy measure . In their desperation to raise tax revenues, the 2015 budget states that
this VAT on fee -based financial services will be implemented . This is a bad policy for the economy. Ghana ’s financial system is
underdeveloped with only some 20% of the population having a Bank account . What the
government should rather be doing is providing some incentives for financial inclusion. The introduction of VAT on fee -based
financial services would only serve to drive people away from the banking system with the
attendant reduction in financial savings. It will also increase the cost of doing business for the
business community .” , he said .
Touching on the Real Estate sector, Dr. Bawumia noted “ Some statistics on the property market in Ghana would be instructive
in placing this VAT on real estate transactions in context. First, Ghana currently has the highest mortgage to income ratio (at 605%) in the world . In terms of House Price to Income ratio , Ghana is the 10 th highest in the world.
In terms of housing affordability, Ghana ranks as the least affordable property market in the
world . Given these facts, it is clear that the real estate industry in Ghana needs help. Government should rather be trying to
encourage the development of the mortgage market through tax incentives for real estate
developers and better land administration. A 5 % VAT on real estate transactions is the
wrong way to go . ”

Shatta Wale ft Samini "We are the best". Update: 22 - Nov - 2014.

A source close to both dancehall artist claims that they ( Shatta Wale and Samini) are in the studio working on a new single titled "we are the best".
We are doing our best to contact the managers of both artist to confirm the story.
Stay tune for more updates.....

My bum and breasts are natural, says Peace Hyde Update: 22 - Nov - 2014

People’s favorite socialite/celeb, Peace Hyde, known mostly for her super endowed body has come out to clear the air about rumours that
she has pumped more fat into her behind and frontal views.
When asked by Graphic Showbiz as to why she has all that power, she humbly said and we quote;
“I know I am well-endowed but I don’t know why anyone should think I have done boobs and bums job. I have had people walk up to
me to ask why I have such big breasts and buttocks and whether I have done boobs and bums job.
All I tell them is my body is natural and not artificial.
I used to be very big some years ago; I had big buttocks and breast but with regular exercise I
have reduced in size and I like the way I look now.” So we guess ya’ll can cover your face in shame
now as they all are natural

Prez Mahama Dissolves NACOB Board Over Cocaine Saga Updated: 22 -Nov -2014

President John Dramani Mahama has dissolved the governing board of the Narcotics Control Board (NACOB ).
In a rather terse statement from the Chief of Staff , Mr Prosper Bani, Saturday morning , government simply said further details " will
follow in due course " . It is unclear if the decision to dissolve the
board charged with preventing the use , import , and export of narcotics , was linked to the busting of a Ghanaian woman , Nayele Ametefeh , at the Heathrow Airport for brazenly attempting to traffick cocaine.
NACOB had stated in a statement to the media, that Ms . Ametefe was arrested on the 10 th of
November , 2014 , through its collaborative effort with its British partners . The agency tasked with the formulation and enforcement of narcotics laws in the country
further indicated in the statement that Ametefeh travelled on an Austrian passport and not with a Ghanaian diplomatic passport .
But the UK High Commission to Ghana in a statement issued on 21 st November , expressed
doubts over the NACOB's involvement in the arrest of Nayele Ametefe and discounted claims that the Ghanaian lady was apprehended due to the collaborative efforts of the two
countries . The statement categorically stated that “UK
authorities had no prior knowledge of the intentions of Ms Nayele Ametefeh before flying from Accra to London on 9 / 10 November ”
with about 12kg of cocaine in her hand luggage.

IMF behind 17 . 5 % Petroleum Tax – TUC Updated: 22 -Nov -2014

The Trades Union Congress ( TUC) is accusing the International Monetary Fund (IMF) of
masterminding the controversial 17 .5 % Special Petroleum Tax that was approved by Parliament on Wednesday. Speaking on Eyewitness News on Friday , the
Deputy Secretary General of the TUC, Dr Yaw Baah said , “We find it extremely surprising that government will allow the IMF to dictate to them and say impose VAT on petroleum products. ”
He said we “…have a situation, where we are struggling and you have a government impose
VAT on petroleum products when we are already crying. VAT is regressive and so progressive countries don’t really duel so much
on it . That is why we should not allow the IMF to dictate to us.”
Dr Baah also described the “ decision to move from Senchi to IMF” as “very unfortunate . ”
“ You are running a country and you have stakeholders and you brought all of us together and we all agreed that this is the path that we want to take. Even if you want to do U -turn you consult, you don’ t just go ahead and say you are going to IMF it doesn’ t matter what
anyone will say ,” he fumed .
The IMF in a release endorsed the nation ’s 2015 budget saying it contained the plan to reduce the country’ s fiscal deficit and properly
manage government ’s finances .
But Dr Baah said they are not surprised that the IMF has endorsed the budget saying “of
course IMF will be happy to see such a budget …because the budget reflects the IMF
tradition. ” He however chastised government for seeking assistance from the IMF despite revenues being raked from the oil sector .
He said, “ What we need now in Ghana is not more money because we have got more money . If you compare the money we have
now to ten years or two years ago the economy is growing, we are having more money . The problem is how to manage the money that we have that is why we should not allow the IMF to dictate to us.”

Bawumia: NPP borrowed $5.5bn in 8yrs, NDC $27bn in 6yrs Update: 18 - Nov - 2014.

The Vice Presidential Candidate of the New Patriotic Party, Dr Mahamudu Bawumia, has warned that to allow the National Democratic Congress (NDC) to stay one day in office beyond the eight years would be a major tragedy for the future of Ghana.
He said “the stakes are high for our country in 2016 because of what is happening to the economy” and change must happen come the
next general elections.
Addressing a fundraising dinner held in his honour in London, United Kingdom, last Friday, Dr Bawumia lamented, “There’s
suffering in the land. Needless, untold sufferings…”
He defined the sum total of the leadership of John Mahama to “Corruption Mismanagement
= Wahala”. He also criticised President Mahama of reducing the essence of governance to
“borrowing” recklessly and “taxing” ruthlessly, including putting taxes on a commodity like condom. The respected economist used
comparative figures to show how low the country has sunk since the NPP was voted out of power in December 2008 and called for an
electoral end to the eight years of negative experiment and experience under the NDC.
Backing his claims with facts and figures, he stated that an unprecedented amount of
money has been spent since 2009 under the National Democratic Congress and with very little to show for it as the NDC comes to the
end of its second successive term in office in 2016.
“In the last six years, the NDC has borrowed US$27 billion. Before that, we, the NPP, borrowed a total of US$5.5 billion in eight
years. Compare that to the NDC borrowing $27 billion in six years and ask yourself what they
have done with all that money,” the running mate to Nana Akufo-Addo said.
He said, though a lot more money has been spent, it is a paradox of economic management that this level of excessive spending has only led to greater hardships
being visited on the people.
“NDC inherited a public debt stock of GHS9.5 billion in 2009,” the former Deputy Governor of the central bank said. “Today, Ghana’s debt has gone up to GHS65.7 billion. So when I say the stakes are high I am talking about the
destiny of our country, Ghana, the future of the youth.”
“The NDC has been taxing everything, including condoms and cutlasses. In terms of resources,
this NDC government has had more resources than any other government. We did not have
oil. Yet, Ghanaians know what we did with the limited resources we had. We spent money responsibly to create the NHIS, introduce
Capitation Grant, expand access to education, we spent wisely on infrastructure and built more roads than any other government,” he said.