The Minority in Parliament says it will oppose the deal in which government of Ghana is seeking to access a whopping $15 billion facility from the Chinese government.
The opposition lawmakers said the deal might cripple the economy which is already burdened with huge debts.
Minority Spokesperson on Finance, Casiel Ato Forson told Israel Laryea on Joy FM’s Midday News Tuesday, the money will increase Ghana’s debt stock to the region of 100 to 110 percent of GDP if the deal is allowed to pass.
The Government of Ghana has secured a $15 billion loan facility from the Xi Jinping government for the swift implement of many of its “ambitious programmes.”
The deal was announced in Accra by Vice President Dr Mahamudu Bawumia on Sunday after a four-day visit to the Asian country.
On his arrival, the vice president defended the use of untapped natural resources as collateral for the money, saying, it makes “economic sense” for Ghana to use what it has to get what it needs from other countries.
“Ghana needs to leverage its natural resources,” the Vice President told the media at the Jubilee lounge of the Kotoka International Airport.
In exchange for the facility, China would be given an unimpeded access to tap Ghana’s rich resources which include a 2.8 billion metric tons of iron ore, 960 million metric tons of Bauxite, 430 million metric tons of Manganese and 413 million tons of limeston.
“If we need just $20 billion to do a major, massive Marshall Plan and we have $460 billion sitting in the ground then what we really need is to develop a financing model that leverages just a small fraction of our reserves,” he said gleefully.
The gigantic deal comes after China’s Eximbank promised the past National Democratic Congress (NDC) government a $3 billion facility. After several years, the Chinese gave the then government only $1 billion.
In the company of Senior Minister, Yaw Osafo Maafo, the Vice President said government stands to get more because there is an unfinished business.
The staggering $15 billion China facility will have to be sanctioned by Parliament before it will be released by the Xi Jinping government.
With 106 seats in the legislature against 169 seats for government-aligned lawmakers, the NDC MPs said they will reject the deal.
Mr Forson argued the size of Ghana’s economy which is between $42-3 billion will not be able to accommodate a facility that is close to half.
“I don’t think it is smart borrowing,” he said, adding, the President Nana Addo Dankwa Akufo-Addo led government has shown a “huge appetite” for debt.
But Deputy Finance Minister, Kweku Kwarteng said minority’s position on the facility is misplaced.
“There is no point always rushing to the media to discuss things you do not understand,” he criticized the NDC MPs.
He said the terms governing the China deal will be negotiated and until it is placed before Parliament it will not come into effect.
Source: myjoyonline
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It would be in the interest of the minority to approve the loan for the speedy development of our country. The loan is for the development of Ghana, not NPP. Who cares, whether they resist. Numbers count not mouth talk.
DOUBLE STANDARD GOVERNMENT, ON ONE BREATH NANA ADDO WILL TOUT THE NEED TO STOP FROM DEPENDING ON FOREIGN DONORS,AND STOP BORROWING, THEN HIS MPs WILL COME NDC HAD BORROWED A LOT AND DEBT STOCK HAS ARISE. NOW WHAT IS IT THAT WE ARE HEARING NPP HAD GONE TO BORROW FROM GALAMSEY CHINESE TO BE USED FOR WHAT ONLY GOD KNOWS PROJECTS.
JOKERS. TRUST NANA TO DELIVER. FREE MONEY WILL COME, GHANA WILL BE TRANSFORMED AND THE NDC WILL BE IN OPPOSITION FOREVER. AMEN. GHANA WILL WORK AGAIN.
GHANA PEOPLE WILL SUPPORT IT BECAUSE IT WILL BE USE TO CREATE JOB FOR THE MASSES, N,D,C CAN GO TO HELL, GH PEOPLE
@Ato Forson Oh Ato! you are a disgrace to our constituency. We are watching and counting your continuous empty headed and mischievous comments. Please, Ato we need to move ahead to develop this country, not those bad loans and decisions your NDC government and your incompetency has plug this country economically.
The minority are filled with jealousy and acrimony.They thought that the NPP could not get any assistance to undertake the numerous projects promised. Governance is about planing and setting of priorities in the right directions with the commitment of following them. When you waste government money on bbq and pampers the results are what was seen under the bad NDC.
The minority are still showing their incompetence even in opposition. Do you oppose a move or action just for the sake of opposing or you have a better alternative? if the Chinese are committing that much to Ghana,dose it mean everything are loans and can't some it be investment? You don't have the full facts and yet you are rushing to criticize it.If even everything is to be loans, will it be meant for recurrent expenditure?This attitude of yours can best be described as premature ejaculation. What a shame.
I am increasingly becoming disappointed with Hon. Ato Forson. I hope he is not allowing himself to be used to do the dirty work of the incompetent minority. He is constantly displaying his ignorance or engaging in plain mischief.
THESE I DI OTS HAVE FORGOTTEN THEY DO NOT HAVE THE NUMBERS TO OPPOSE THE GOVERNMENTS WONDERFUL PROGRAMS. ?
These minority members koraaaa are they normal?