Ghana’s debt situation frightening, Foreign Ministry arrears alone is GH₵453m – Ablakwa

Minister for Foreign Affairs, Samuel Okudzeto Ablakwa, has raised serious concerns about Ghana’s escalating debt crisis and its impact on the country’s foreign ministry and international obligations.

Speaking on Joy FM’s Super Morning Show on Friday, February 28, Mr Ablakwa revealed that the country’s debt situation is “frightening” and outlined the significant financial challenges the government faces in clearing arrears, particularly in relation to its foreign obligations.

Mr Ablakwa disclosed that the Foreign Ministry has been hit hard by the country’s financial troubles, with outstanding arrears of approximately GH₵453 million.

He explained that much of this debt stems from unpaid access contributions to international organizations such as ECOWAS, the African Union (AU), and the United Nations (UN).

These contributions, which are vital for Ghana’s active participation in international diplomacy and projects, must be paid annually.

“The debt situation is really frightening; the foreign ministry was not left out. I have also met colossal arrears of about GH₵453 million. Largely, our access contributions to international organizations we belong to and a number of projects started that have not been paid for,” Ablakwa noted.

He further explained that these unpaid contributions are a major concern as they threaten the country’s relationships and standing within these global organizations.

Mr Ablakwa highlighted the severity of the situation, explaining that Ghana faces substantial arrears to clear and that as a result, major projects are being suspended.

He revealed that, in preparing the 2025 national budget, significant cuts had to be made to various projects to manage the country’s financial commitments.

His department, initially requesting GH₵3.3 billion, had to reduce its budget significantly due to the pressing need to clear these arrears.

“In preparing the 2025 budget, we have to suspend a lot of projects. What my department brought when we had our first management meeting, they wanted about GH₵3.3 billion, but we had to slash it looking at the arrears situation,” he mentioned.

Source: myjoyonline.com