Former President John Dramani Mahama and former Finance Minister Seth Tekper, considered floating a 100-year bond when the National Democratic Congress (NDC) was in power the last time, for infrastructural projects, Henry Nana Boakye (Nana B), National Youth Organiser of the governing New Patriotic Party (NPP), has said.
According to him, Mr Mahama and Mr Tekper thought it wise to float that long-term bond because, in their view, it was less expensive to service long-term bonds than short-term ones.
Nana B’s claim comes in the wake of criticisms by the Minority in parliament against a consideration by the Akufo-Addo-led government to float a $50billion centenary bond.
President Nana Addo Dankwa Akufo-Addo, while speaking to President Xi Jinping of the People’s Republic of China during his recent state visit, said: “The Ministry of Finance and the economists in Ghana are looking at floating a $50 billion Century Bond”.
“This will provide us with the resources to finance our infrastructural and industrial development. We are hoping that, at some stage, China will interest itself, and take a part of it as China’s contribution to Ghana’s development”, the president said.
According to him, the centenary bond will be one of government’s means of securing long-term financial sources that “will allow us to deal with our infrastructural development, and also realise the vision of a Ghana Beyond Aid.”
However, NDC’s Bolgatanga Central MP, Isaac Adongo told Accra FM on Tuesday, 4 September that: “This government is as visionless as a child, otherwise, how can you go for such a loan without a blueprint telling the people of Ghana what went into that loan.
“What are you going to do with the $50 billion? You can only mention that you want to use it for infrastructure, but in 100 years’ time, nobody will need the things that you want to develop today, so, why take loan for 100 years.”
He added: “I thought the NPP said they were not going to borrow when they come into office but what are we seeing now? Plunging the country into massive debt is what they are doing at the moment.”
But speaking on Adom TV the same day, Nana B said: “…Indeed, under the NDC administration, Seth Terkper tried to raise a century-long bond. They made moves to secure such a bond because they knew that it was less expensive to service a long-term bond than a short-term bond”.
“Speak to any economist and he will tell you that long-term bonds are less expensive to service than short-term bonds.
“The NDC under His Excellency the former president, John Mahama, considered positively going for some of these long-term bonds to improve on Ghana’s infrastructure.”
Source: classfmonline.com
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |
Will you be happy if your father leaves you debt to pay ? ,no .Always borrow the amount you can burrow and pay within your term limit ,this leaves the next government room to operate.
We can’t be defending clueless brains like Nana B’s
As a National Youth Organizer, you should know that your words will be used against the party. Why justify our actions by what Mahama wanted to do as If we approved of it?
This statement by Nana B seems to leverage the ground for Manama to come back to power to continue talking loans for massive development. At least we now know NPP is a lazy government taxing the people and taking loans in billions. You lied to Ghanaians to come to Power and we will vote you out.
Oh so Mahama’s government has now become your standard that you’re following? If you know he was doing the right thing why did you then tell Ghanaians that he was contracting too many loans? So you were lying to Ghanaians. Things are falling apart indeed.
@This Thing... please asked john the ded goat, betty mould iddrisu and woyome to bring back Ghanaians money they created looted and shared yes becos its Ghana kudi. NDC YAAMUTU, NDC YAAMUTU, NDC YAAMUTU, NDC YAAMUTU NDC The nation wreckers
@This Thing... There is no need for personal attacks on "something something B", the Law School and the Judiciary. Is his statement true or not...that is the issue at stake. Let's discuss that and stop the unnecessary, unsubstantiated accusations. Let us fear God in ALL our dealings please.
This thing called something something B has no shame. By the way, has he accounted for the kudi deducted from the allowa of the last batch of NSPs numbering about 90k across Ghana prior to their koftown election? Small wonder our judiciary is in a mess if characters like his ilk are pushed wholesale into our once cherished law school, pass doubtfully and now parade themselves as learned people. Such a shame. He should deal with the insurmountable issues they are putting us through and stop the lies.