“A lot of people lost their personal properties,” Mahama told reporters in the capital, Accra, on Friday. “It also
Storm drains and gutters overflowed on June 3 during the heaviest day of rain in six years and dozens of people were killed in an explosion at a gas station where they had taken refuge. The crisis underlined years of shortfalls in infrastructure spending that has failed to keep up with a growing urban population and economic expansion.
The unexpected expense to recover from the disaster will add pressure on the budget deficit, as a drop in oil prices hits state revenue. The government is targeting a fiscal gap of 7.5 percent of gross domestic product from 9.3 percent in 2014.
Last year, the government shelved a $600 million project to improve the city’s drainage network and expand the sewer system. “The problem with the current tightening is do we want to put $600 million on our public debt? I would say not,” Mahama said.
Ghana is borrowing almost $1 billion from the International Monetary Fund in an accord reached this year to help stabilise the economy.
The government also plans to offer as much as $1 billion Eurobonds in a sale that will take place after the IMF conducts a review of the economy this month, said Mahama.
The country has a pledge that the World Bank will guarantee those securities and other bonds with a maturity of 10 years or longer to help bolster its debt offerings, he said.