Business News of Tue, 4 Sep 201821
$50billion century bond too high for Ghana’s economy - Avedzi
The Deputy Minority Leader, James Klutse Avedzi has said he will lead the minority to oppose the proposed $50billion century bond government intends to go for, if it ever comes to Parliament.
President Akufo-Addo has disclosed that the Finance Ministry is currently considering borrowing $50billion from the bond market that will be repaid over 100 years.
If it goes through it will be the single biggest loan ever contracted in Ghana’s history.
President Akufo-Addo has already invited China take part in the bond but in a radio interview reacting to the disclosure by President Akufo-Addo, Mr Avedzi said the figure is too high for Ghana’s economy to bear in the long term.
“Future revenue will be mortgaged because every year, you have to pay 15% as interest on $50billion. First of all I anticipate that they will not even come with the $50billion, that is number one, if they come with$50billion I will oppose it personally, if they revise the amount to appreciable amount which we think that it will not mortgage the future revenue to the extent that it will jeopardise the economy of this country," he said.
Adding he said, "I will support it because I know what it is to borrow, because borrowing for an investment is a good thing, but you must be guided by how much you borrow, and whether you will have the capacity to pay for it."