Govt borrowing would crowd out private sector investment
Govt removes discount on benchmark values
Ex-Deputy Minister for Finance, Cassiel Ato Forson, has hinted that private sector investment would be hampered in 2022.
He explained that the government will be borrowing heavily from the domestic market since the Euro bond market was closed to Ghana for, at least, the first half of 2022.
Ato Forson who said this on his Facebook page, on January 3, 2022, advised that private businesses should expect an increase in interest rate.
Government borrowing heavily from the domestic financial market would lead to an increase in interest rate.
The increase in interest rate will discourage the private sector from borrowing to either start or expand their business, leading to a decrease in private sector investment.
Ex-Deputy Minister for Finance also said the price of some goods including rice, sugar, pharmaceuticals and cement would increase by 30 percent. Read Full Story
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