Parliament approves controversial $1 billion Eurobond

quist

December 23, 2015 2:56 PM

This means that Finance Minister Seth Terkper is now at liberty to issue the fourth Eurobond in fourth Eurobond in three years coming just fourth month after the country's last $1 billion Eurobond which came at record- high interest rate of 10.75%

The parliament of Republic has eventually approved Ghana's next $1 billion sovereign Eurobond.

This means that Finance Minister Seth Terkper is now at liberty to issue the fourth Eurobond in three years coming just four months after the country's last $1 billion Eurobond which came at record- high interest rate of 10.75%

Though the minority in parliament raised concerns over what they described as poor economic management by government, the house approved a sovereign guarantee for the Eurobond through a voice vote.

The Minority MPs said they do not want to be a part of unwarranted government borrowing, characterized by excessive domestic loans.

The Eurobond approval process which started on Tuesday but ended on a controversial note where the minority were up in arms over the Deputy Speaker, Barton Oduro's annulment of the vote count they had done which rejected the Eurobond with a 67 to the majority's 66.

The motion by the Finance Minister, Seth Terkper, seeking parliamentary approval to borrow from the international market lost by one vote.

Ebo Barton-Odro, First Deputy Speaker, announced that the number of Parliamentarians present in the House, i.e. 133, does not meet the requirement to take a decision on a matter.

The motion was subsequently tabled for debate on Wednesday.

Seth Terkper says the entire one billion dollar Eurobond would be used for refinancing Ghana's short-term debts.

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