Business News of Tue, 4 Sep 20183
Century bond will tackle infrastructural challenges – Oppong Nkrumah
The government has indicated that the move to issue a century bond in the future is aimed at accelerating the infrastructure development of the country.
President Akufo-Addo announced in China on a State visit that government’s economic management team is considering issuing a 50 billion dollar century bond.
Speaking to Citi Business News on the issue, Information Minister Designate, Kojo Oppong Nkrumah stated that such a bond would be cheaper and provide fiscal space for the government.
“There is a proposal for the administration to consider a century board as has been done for example by China, Argentina, Austra, Ireland and even Mexico which provides ultra long term financing at low rates and helps you to principally refinance our current debt stocks but also provides financing for some of the major items that we intend to embark on; railway, regional intercity motorwat, Things like the regional airports. Industries that require financing as well and at this stage, this proposal is being considered.”
Ghana last week signed eight Co-operation Agreements and Memoranda of Understanding with China, in different sectors of their respective economies, aimed at deepening the ties of co-operation and the bonds of friendship that exist between the two countries.
The agreements were signed on President Akufo-Addo’s state visit to China where he held bilateral talks with that country’s president.
The agreements signed are the “One belt one road Memorandum of Understanding, Memorandum on Regional Aviation Co-operation Agreement for Co-operation in the peaceful use of nuclear energy, and Co-operation to carry out Maternal and Child Health Project.”
The rest are “Framework Agreement on Financing Insurance Co-operation ($2 billion Sino-Hydro deal), Economic co-operation on Phase 2 project of the University of Health and Allied Sciences, Co-operation on the expansion of the Cape Coast Stadium, and Co-operation on the supply of police vehicles to the Ghana Police Service.”
Some have however raised concerns over the said agreement, saying such recent contracts signed between China and Africa seem to have been done in haste.