The minority leader in Parliament, Hon Haruna Iddrisu has stated that the minority would not approve 750 million dollars out of the $1 billion syndicated loan unless the government provides further and better particulars before the loan will be approved.
He added that though the government needs resources for import cover, they are not approving the loan unless better amendments and negotiations have been done. The minority leader revealed that government will pay $43million as insurance or premium from the remaining $250 million and they find it unacceptable hence, will not agree to that.
This development is a result of the Finance Minister, Hon. Ken Ofori-Atta, presenting a 1-billion-dollar loan to the house to be approved. Ghana has been ranked the second country in the world with the highest debt default risk. Ghana has been to the International Monetary Fund sixteen times, and this year the government of Ghana has sent a proposal to the institution of them coming to implement initiatives for the country.
An Aggressive Borrowing Habit
One reason why the economy of Ghana is in tatters is a result of borrowing money from other countries. The government of the day made so many promises when coming to power and even initiated an initiative of Ghana depending on the resources we have in the country (Ghana Beyond Aid). Most loans the government goes in for come with huge interest or insurance that put a strain on the resources of Ghana, which are already stretched.
The government of the day needs to be very transparent about where this money is going and how it will be used for Parliament’s approval. Without transparency, the minority in parliament should not approve the country taking such a large loan.
Since the fourth republic, there have been issues of corruption and mismanagement of public funds but Ghana continues to face these problems. The minority in parliament should hold on firm to this decision and make the government provide clarity and further particulars before this loan is been approved.
Ghana Beyond Aid: Let us Walk the Talk
The country indeed needs resources to get off the ground in our current situation, however, it is important to remember that not all of those resources need to come from loans. Taking out a loan should be a last resort considering the country’s current debt stock. That’s because these loans need to be repaid with interest, which can put a strain on our finances. The country should look for resources rather than going on for loans to add up to the country’s debt index.
Many loans secured by this government and the previous government have been spent without much accountability. The first step parliament should not for before approving this loan is to look out for a well-written plan and particulars to support what the government is going to use the money for. This will help the house determine how much money the government needs to get started and how much they can realistically expect from this loan.
Once the government has secured the funding, then the plans should be rolled out. The minority should make sure that the government is accountable for the loan they went in for.
Ghanaians Have Had Enough of the Deceit
With all the above being said it is very sad in our country that oftentimes parliamentarians put an attitude to show the general public that they are better than the party in power to help their party win the next elections. Many of such deeds have been displayed in Ghana’s fourth republic.
If indeed the parliamentarians are fighting for the interest of Ghana and not their selfish interest then it is a good fight but if not then we see through their lies.
Chief Operations Officer at Dalex Finance, Joe Jackson, has stated that the country needs this loan to help jerk the economy forward. The minority should not delay this loan because they want to see this government fail to help them next power. What is right must be done to help move the economy of Ghana forward.