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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THIS ATO FORSON GUY IS PLAIN STCHUPIIID. HE DOESNT KNOW FOKO, HE IS THE FACE OF THE DISGRACED NDC. WHY ARE DOING THIS TO GHANA. ? WASTED PEOPLE. APUUUU
Your constant press conferences will never make you holy but c--r--iminals. I listened to Kwabena this morning on Neat Fm and when the host ask him about happened in their time about the contaminated fuel and how much was it sold for, He replied he is not aware if they sold contaminated fuel before. These people think Ghanaians are unwise and not aware of what happened in their time. At this time and age they want to continues to take Ghanaian for a ride. Eyes are opened now.
If I have an asset I have not been using and I decide to give it out to somebody in exchange of money that I need critically, is it going to make me better or worse? I am disappointed in the NDC members in Parliament. They are making a mockery of the whole Parliament. The populace are now fed up with their Press Conferences. These things will never bring them back to POWER.
When Ndc took Ghana from 9billion to over 100billion in debts in 8 years, where was this man? Now they talk of distress. Ndc are never serious. Ndc colllapsed the economy, they must sit down and watch real brains at work. Nana and Bawumia all the way.
Please gentleman give us a break ok. You guys were in power and we saw the level of incompetence, corruption and ***barred word*** so please stop the propaganda. Ato Folson what makes u think ure a good finance person? INCOMPETENT GUYS