Interest on GH¢113bn Road Debt Has Soared to GH¢665m – Kwame Agbodza
Minister-Designate Highlights Growing Debt and Escalating Interest on Road Projects
- Governs Kwame Agbodza has raised concerns over the country’s mounting debt obligations
- Agbodza disclosed that the government is leaving behind at least GH¢113 billion in outstanding liabilities
- He attributed this surge in interest to the nature of the contracts tied to the debt
Governs Kwame Agbodza, the Roads and Highways Minister-designate, has raised concerns over the country’s mounting debt obligations, revealing alarming figures regarding the state’s financial commitments.
During his vetting by the Appointments Committee on Monday, January 20, Agbodza disclosed that the government is leaving behind at least GH¢113 billion in outstanding liabilities, a figure that poses a significant challenge for the incoming administration.
Among the most pressing financial concerns he highlighted was GH¢20 billion in unpaid certificates, which he described as a serious burden on the state’s finances.
However, Agbodza expressed particular alarm over the interest on this debt, which has escalated to a staggering GH¢665 million.
He attributed this surge in interest to the nature of the contracts tied to the debt, which have accumulated substantial costs over time.
Agbodza called for urgent action to address these unpaid certificates and the high interest rates, warning that failure to do so could exacerbate the country’s fiscal difficulties.
“At the transition committee as of today, the NPP government is leaving a minimum of GH¢113 billion in commitments. What we should be worried about, though, is that in that same document, they are stating that unpaid certificates from the Government of Ghana total about GH¢20 billion, and more concerning is that the interest on this GH¢113 billion has reached GH¢665 million due to the nature of the contracts,” Agbodza said.
