In laying the loan request before the House on behalf of the Finance Minister, Dr Mohammed Amin Adam, former Majority Leader, Osei Kyei-Mensah-Bonsu explained that the loan is for the Ghana Financial Stability Project.
“The $250 million dollar facility is a financing agreement between the government and the International Development Association of the World Bank. Mr Speaker, it is for Ghana’s Financial Stability Project,” he said on July 10.
According to him, the loan is critical in the debt restructuring programme the government embarked on.
But the Minority in Parliament say they cannot understand how government would be requesting Parliament to approve $250 million at a time when it is asking it’s debtors to forgive or postpone the repayment of its debts.
Minority Chief Whip Kwame Governs Agbodza said the conduct of government regarding Ghana’s debt situation is worrying.
He added that the government approach did not demonstrate its commitment to taking Ghana out of its current debt distress.
“This actually goes to the heart of almost every problem we have currently as a country – overborrowing. When we’ve borrowed up to our neck and we can’t pay, we are going round the world asking everybody to forgive our loans yet we are borrowing more.
“We have gone everywhere. China was last week and then on Wednesday morning you are borrowing more. How do you solve your borrowing problem by borrowing more?” he questioned.
He further cautioned government to halt borrow as it could bring the economy to its knees.
Also, former Minority Leader Haruna Iddrisu warned that the continuous borrowing of government may be in breach of the International Monetary Fund deal being implemented.
According to the Tamale South MP, “Ghana as part of its agreement with the IMF between now and even end of 2025 cannot borrow more than $250 million non concessionary loans.”
He, therefore asked for clarification whether the loan is concessionary or non-concessionary.
