Ghana Parliament’s Minority Members Oppose Government Plans to Borrow GHC10bn

• Ghana’s Parliament’s minority members have decided to resist any government attempt to borrow GHC10 billion from the Bank of Ghana.
• Meanwhile, on May 15, the Bank of Ghana released GHC5.5bn to the Ministry of Finance, the first tranche of the total GHC10bn.
• Parliament’s Speaker, Prof Mike Oquaye, has referred the matter for review and referral to the Finance Committee of Parliament.

Ghana Parliament’s minority members have decided to resist any government attempt to borrow GHC10 billion from the Bank of Ghana.

The Opposition National Democratic Congress (NDC) Members of Parliament said they believed that the government had an ulterior motive hence this unprecedented move.

Parliament ‘s Finance Committee ranking member Cassiel Ato Forson said this was a ploy to get the state funds for the 2020 election campaign.

Meanwhile, on May 15, the Bank of Ghana released GHC5.5bn to the Ministry of Finance, the first tranche of the total GHC10bn.

READ ALSO: Ghana’s Parliament Minority Members Oppose Government Plans to Lend GHC10bn

The GHC4.5bn left will be provided through the purchase of government assets but that will depend on future developments.

Speaking in Parliament, the Minister of Finance, Ken Ofori-Atta, stated that the GHC10 billion emergency facility will support the national response to coronavirus disease.

Ken Ofori-Atta announced this on Thursday 28 May 2020, when he submitted a report on the government’s borrowing limit under subsection (6) of section 30 of the Bank of Ghana Act, 2002 (Act 612)

The minister validated the request for the funds saying that it was consistent with the global policy responses of central banks with large-scale acquisitions of assets to provide support for the management of the pandemic.

By providing that amount, it means that the central bank has set aside a Memorandum of Understanding with the IMF that prevents it from financing the government’s budget which was the case in previous years.

Parliament’s Speaker, Prof Mike Oquaye, has referred the matter for review and referral to the Finance Committee of Parliament.