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The Minister-Designate for Roads and Highways, Governs Kwame Agbodza, has raised concerns over the GH¢665 million interest accrued on Ghana’s debt commitments, describing it as a critical fiscal challenge.
Speaking at his vetting before the Appointments Committee on Monday, January 20, Agbodza disclosed that the outgoing government is leaving behind a total of GH¢113 billion in commitments.
However, he emphasised that the ballooning interest on these obligations, caused by the structure of the contracts, presents a significant strain on the country’s finances.
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“What we should be worried about is that the interest on this GH¢113 billion is GH¢665 million due to the nature of the contracts,” he stated.
Among the commitments, GH¢20 billion represents unpaid certificates, further complicating the fiscal landscape for the incoming administration.
Agbodza called for urgent measures to address the mounting interest and renegotiate terms of contracts to prevent further strain on the state’s resources.
His revelations underscore the pressing need for fiscal discipline and innovative strategies to manage Ghana’s growing debt burden effectively.
