Business News Mon, 6 Jun 2022

Finance Ministry starving investors, creditors of required economic information – Adongo alleges

Government to raise US$2 billion syndicated loan

Government secures GH¢1.395 billion from T-bills auction sale

Expenditure cuts not meaningful - Isaac Adongo

Deputy Ranking Member of Parliament Finance Committee, Isaac Adongo has accused the Finance Ministry of starving investors and creditors of the required information to guide their economic decisions.

He opined that the development has driven investors into limbo by the lack of a clear narrative about a credible economic recovery path.

In a Facebook opinion sighted by GhanaWeb, the Bolga Central lawmaker called on government to provide the needed information that will enable investors and creditors to make informed decisions.

“Unfortunately, these calls and demands for information cannot be wished away as basic economic behavior establishes that a widening information asymmetry occasioned by such a deliberate action can only be costly to Ghana in our present and future endeavors with rippling perceived risk and spread effects,” he wrote.

“The fears of investors have been even more heightened by the recent revelation by a key influence peddler close to the corridors of power of a serious consideration of a “price control” regime, long abandoned by civilized and contemporary economies,” the MP added.

Touching on government’s decision to cut down 30 percent and a further 10 percent of discretionary expenditure in its budget, Adongo described the move as not being ‘meaningful'.

“Even before this, the scam proposal to cut the budget by 30 percent and a further 10 percent of discretionary expenditure both of which would amount to some GH¢31 billion unnerved investors because it was not meaningful," he said.

He continued, "Additionally, the promise to raise US$2 billion to shore up reserves when the approved budget for such sovereign financing in 2022 is just US$750 million at a time the doors of the international capital market is closed to Ghana further dampened credibility in government action and thought processes. No wonder, no cent of the US$2 billion has arrived with the cedi in tatters and gasping for breath.”

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Source: www.ghanaweb.com
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