Prime News Ghana

Minority accuses gov't over China loan deal

By Michael Abayateye
Isaac Adongo
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Member of Parliament (MP) for Bolga Central, Isaac Adongo, says   government's $19 billion deal with China is reckless and will have a dire effect on the country's economy.

Mr. Adongo, who is also the member of the Finance Committee of Parliament, said the situation created by Dr. Bawumia by accepting the money from the Chinese government is not only reckless, but frightening and scary.

Government has announced a $19 billion loan agreement with China, an amount which would help facilitate the One District, One Factory project.

But the Minority insist the amount would hugely affect the country's debt stoke and sustainability, and should not be encouraged.

According to him, the  Vice President spoke vehemently against the $1 billion of Eurobond during President Mahama's administration, so wondered why the very person expects praises to be heaped on him and the government, when the money is only adding up to the debt to GDP ratio.

"This government vilified the 72% debt to GDP ratio during the NDC administration as the worse that the country could ever have. Now to add $19 billion of additional loans in such a period will push our debt to GDP to a region of 120 to 130%, which is the worse that could be found in the world,"he stated on Accra-based Citi FM.

Mr. Adongo said Dr. Bawumia “who advised the people of Ghana to vote against the NDC for nearly borrowing $1 billion of Eurobond because that would have created a major problem for Ghana's debt profile to now ditch Ghana into a 130% of GDP, is frightening, scary and reckless."

He said China cannot make such an offer without the country having to leverage  certain natural resources for the loan.

Mr. Adongo said Ghanaians need value for money and would ensure the economy is not dragged into a ditch by reckless borrowing. He said the very government that said it was not going to borrow money to develop the country is now  in China expecting money to support development.

But  Deputy Minister for Finance, Kweku Kwarteng, said the agreement between the two countries is so far on the level of an MOU, and that conditions attached to the money are yet to be discussed. www.primenewsghana.com

 

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