Prime News Ghana

Minority will reject GH¢2b GAT loan-Klutse Avedzi

By Justice Kofi Bimpeh
minority_gat
Deputy Minority Leader, James Klutse Avedzi

The Minority in Parliament has served notice that they will reject the GH¢2billion loan meant to rescue some local banks under the Ghana Amalgamated Trust (GAT) Limited.

Deputy Minority Leader James Klutse Avedzi said GAT is an illegal entity and the Minority will reject the approval of sovereign guarantee for the loan.

“We don’t know what is GAT. Ghana Amalgamated Trust Limited, is it a company? Established by who? Parliament knows nothing like that. So, why do you introduce a company that is alien to Parliament for Parliament to work for us to give a sovereign guarantee for that company to go and borrow?” he asked.

“Parliament cannot give approval for a company we don’t know anything about to go and borrow."

GAT is an arrangement of private pension funds to inject GH¢2 billion into supporting solvent and well-run indigenous banks, which were otherwise having difficulties meeting the Bank of Ghana’s new minimum capital requirement of GH¢400 million.

Read also: GAT to issue first bond this week to aid undercapitalized banks

The banks are the merged Omni/Sahel Sahara Bank, Universal Merchant Bank, Prudential Bank, ADB and NIB. Parliament is expected to give GAT a sovereign guarantee in order to raise the GH¢2billion required to bailout the five banks.

Speaking to the media, James Klutse Avedzi said: “What I mean by Parliament is not aware of is that, before the government can do anything of that nature it must be approved by parliament. Nothing has come to Parliament for approval.

“Here we have not established or given the authority to the government to establish any company for Ghana and why do you come to parliament asking parliament to give you approval for that company which Parliament has not given the approval to go and establish to give a guarantee to that company to go and borrow money," he added.

Read also: GAT confident of successful bond listing

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