Ghana's economic woes due to COVID-19, Russia-Ukraine war, banking reforms — Bawumia

Vice President Mahamudu Bawumia has said the COVID-19 pandemic, the conflict between Russia and Ukraine as well as the banking reforms in the country are the cause of the economic woes of Ghana.

Dr. Mahamudu Bawumia

He said the banking reforms alone cost the country $7 billion adding the money could have been invested in the economy if not for the negligence of the NDC government.

He stated that "We had to undertake a major banking crisis reform. At that time, 2018/2019, it cost almost $7 billion in order to save the banking system. Now the choice that was available was that either you let the banking system collapse or you save there was really no middle way.

"So we had to save the banking system and the deposits of 4.6 million people [were safe]."

Bawumia, attributing the economic hardships to COVID-19, said the government was more focused on saving lives than the country's fiscal discipline.

He indicated that "We had the worst economic depression since the 1930s in the global economy. Of course from the President’s point of view at the time of COVID-19, the emphasis was on saving lives and not on fiscal discipline.

"So yes, we focused on saving lives at great fiscal cost."

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