Business News of 2014-05-16

National Economic Forum proposes ceiling to gov’t borrowing

The National Economy Forum has proposed that government borrowing from the Bank of Ghana (BoG)be capped.

The cap, it said should be equal to revenues collected in the previous financial year as against the current phenomenon where government can borrow as much as it desires from the Central Bank.

The proposal was part of some 22 other proposals captured by participants of the National Economic Forum, which they described as the Senchi Consensus.

The forum opened on May 13 at Senchi, a suburb of Akosombo in the Eastern Region, and ended Thursday.

Reading the Senchi Consensus to the President and other participants, Mr Patrick Awuah of the Ashesi University said the forum, which was attended by some 144 people from academia, civil society, political parties and traditional leaders, among others, had also agreed that the Bank of Ghana take urgent steps to review the measures it initially issued in response to the fast depreciation of the local currency.

That review, it said should done immediately and must take into consideration the unintended consequences of the directives on the business community and the economy in general.

The forum, he said also proposed a review of the law establishing the bank to bring it in line with present day challenges.

A detailed version of the proposals, he said would be made available to the general public in the coming weeks.

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