2.25 Billion Bond: Government has deceived Ghanaians – Policy Analyst
The New Patriotic Party (NPP) Government has deceived Ghanaians by issuing bonds of USD 2.25 billion as part of its efforts to retire some yet-to-mature debts, that’s according to a Policy and Development Analyst.
Prior to the 2016 elections, over borrowing by the erstwhile Mahama administration was a key campaigning tool used against the NDC by today’s government.
Kofi Kukubuor averred that he had expected a different approach of revenue mobilization for maturing debt retirement, based on the campaign promises of the NPP government whiles in opposition but met the bond issuance announcement with surprise.
“Before the 2016 elections, the NPP criticized the previous government of excessive borrowing and claimed to have different source of generating revenue so I’m surprised with the news,” he said.
ThePolicy Analyst said the National Democratic Congress (NDC) government was borrowing at ‘smart’ interest rates of between 8 to 10% in the short term to avoid long term interval consequences but was heavily criticized.
However Mr. Kukubuor believes the then borrowing conditions were aimed at retiring the debts at reasonable interest rates with the hope meeting the country’s revenue target in time to comply with the borrowing conditions.
“The previous administration was being smart in their borrowing with the interest rates because of short term payment interval to avoid high indebtedness,” he noted.
The Policy Analyst argued that the bonds issued at 19% by government for a 15 year period will increase the debts portfolio of the country in terms of both principal and interest rates that will be accrued.
“The conditions that the government has issued the bonds on and the interval will heavily indebt the country,” he added.
Kofi Kukubuor believes comparatively, there is no clear shift in policy direction from the debts behaviour of the current government from the previous one.
Sani Abdul-Rahman | kapital971.com