The Minority in Parliament has criticised the government for negotiating about $19 billion with China, and indicated that the loan would plunge the country into a Heavily Indebted Poor Country (HIPC) status.
Interacting with journalists in Accra Tuesday, the Minority Spokesperson on Finance, Mr Cassiel Ato Baah Forson, said the loan facility, which would raise the country's debt by 50 per cent, would raise the country's debt to Gross Domestic Product (GDP) of 72 per cent to about 130 per cent.
"It is going to plunge the country into an era of debt distress. We are going to be very stressed as debt is concerned.
"Ghana's GDP is approximated at $45 billion. They are giving us a debt half of the size of the country's economy. Ghana is going to be debt stressed because of this", he said.
Vice President Dr Mahamudu Bawumia led the government team for the $15 billion funding partnership agreement and commitment reached between the Government of Ghana and China. There is an opening for an additional GHc4 billion during his recent visit to that country.
He said the funding partnership with China was not based on the traditional model of borrowing and aid, and that it was based on the bargaining power of the country’s natural resources such the 2.8 billion metric tonnes of iron ore deposits, 960 million metric tonnes of bauxite, 413 million metric tonnes of Manganese and not to mention Gold and Cocoa.
Contradiction
Mr Forson wondered why the government had now developed interest in borrowing contrary to earlier stance.
"We are witnessing times when a government which says it is not going to borrow has now developed appetite for debt to the extent that as we speak in the first few months, they borrowed GHc2.25 billion.
They are also to borrow GHc2.25 billion for the energy sector", he said.
Public debt
Mr Forson said the $19 billion was going to be a public debt as it would be funded by government revenue.
He said government tax policy might be changed as a result of the loan.
"People are going to invest. Whether it will come tomorrow or the next day, this debt is a serious matter", he said.
The CDD deal
As part of the negotiations, China would be extending the remaining $2 billion CDD loan to Ghana.
Mr Forson said he was disappointed that a party that boycotted Parliament as a result of the $3 billion CDD loan, now assumed that it was good.
He described the twist as hypocritical on the part of the government and indicated that he wished them well.
Mr Forson said the Minority would study the agreement critically when it came to Parliament, and indicated that that would determine the Minority's posture towards the facility.
Source: Daily Graphic
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ATO FORSON KNOW NOTHING HE IS JUST ***barred word***. THEY BORROW TO SHARE BUT WE NPP WILL USE THE MONEY TO BUILD GHANA
Ti weee....he doesn't know anything!!!
A AM SURPRISED AT THE LOW QUALITY OF DEBATE ON THIS ISSUE. WHY CAN'T WE GET USE FACTS AND ARGUE LOGICALLY ON ISSUES? IS IT THAT OUR EDUCATION SYSTEM HAS FAILED US SO MUCH?
Ato l don't think you deserve a comment, just carry on with your n0nsince
***barred word***!!! This moron better shut the f*ck up. What does he know ? Wasn't he part of why the economy did so bad? Incompetent irrelevant malicious b*stard who wants his irritating voice heard. We ain't listening to garbage! Period!!!!
Does the Minority and the NDC read or listen At All??? Where from this blatant display of stuupiidity and dumbnesss. Dr Bawumia said, China and Ghana have signed an MOU. which could bring in about $19 billion .so now, based on agreements and conditions and proposals. Ghana thru parliament will determine how much of the money we shall actually take. Is an MOU a loan agreement?? so where ftom this ***barred word*** calculation from Ato Forson? Why the rush to criticize? oh naa...i can never never be an NDC member looking at the display of ignoraance from the leadership...it's soo sad and tbeir supporters just believe them for any thing! Oh Gosh! How did these people rule us for 8 yrs?? How??
Look at Cassiel Ato Baah Forson the monkey, why did you not say that Mahama when he was taking on loans to create, loot, and share with NDC Folks. When the NDC Led by Mills and Mahama took Ghana which had given to them by NPP from 9billion to over 112 billion, was ***barred word*** Cassiel Ato Baah Forson not aware that the country will be distress. First you left Ghana under HIPC State, now it is create, loot, and share.
Get serious eiii, I will prefer Npp borrowing to build 1 distract one factory for people to get jobs than the Ndc borrowing and stea1ing from the state coffers to enriched themselves.
please don't throw dust into our eyes. criticise NPP for betraying our trust. we were here when they criticize every loan item that was brought to parliament. Today they have realised borrowing is good and going round with both hands chancing all loans. this same bawumia listed 170 questions with huhudious figures telling us Ghana is nose-diving to hepic. l know NPP supporters will turn around to support this deal. but remember 4 years is just a stone throw away.
YOU SEE , IN THIS WORLD PEOPLE BECOME WISE WHEN THEY ARE DISTRESS AND THAT'S EXACTLY WHAT ATO FORSON IS DOING. SINCE WHEN DID HE LEARN THAT LOANS CAN PUT GHANA INTO DISTRESS. WHEN HE WAS IN POWER AND BORROWING LEFT-RIGHT AND CENTER, WHAT DID HE SAY WHEN GHANAIANS WERE COMPLAINING. ATO GHANA NEEDS THAT 15-BILLION DOLLARS AND IT WILL BE MORTGAGED WITH OUR BOUXITE, JUST A FRACTION OF OUR NATURAL RESOURCES, UNLIKE YOURS (NDC LOANS) WHICH WERE WHOLESALE.