His stance comes on the back of the $1 billion syndicated loan presented to Parliament.
ADVERTISEMENT
NDC will not support the acquisition of $1 billion syndicated loan — Mahama
Former President John Mahama has once again reiterated that the National Democratic Congress (NDC) legislators will not support the approval of any new loans that do not have specific terms or purposes.
John Mahama
Recommended articles
Making his position clear during the closing ceremony of a retreat for the Minority in Parliament on Sunday, July 17, 2022, Mahama complained that Ghana is in an economic hole, and it will not be prudent to continue digging with more loans.
"We do not believe that the existence of crisis permits even more reckless decision-making. All decisions and policy choices made at this critical juncture could offer relief or exacerbate our problems and make recovery extremely difficult. We are in a massive hole, and we do not need further digging," he said.
The 2022 budget pointed out that an international financing programme to raise at least $750 million, with an option to increase it by a further $750 million for budget support and liability management.
ADVERTISEMENT
Though the budget captured $750 million, a $1 billion loan agreement is currently before the House.
At a Finance Committee meeting on Thursday, the Minority stalled the approval processes owing to what they call the discrepancies between the loan presented to the house and what has been presented to the committee for consideration.
A Ranking Member on the Committee, Cassiel Ato Forson said "the budget is saying that, in the year, they will be taking a term loan of $750 million. Why do you ask us to approve $1 billion?"
In response to the development, Mahama insisted that until the terms of the $250 million loan component are renegotiated to make them "favourable" and the same captured in subsequent budgets, the Minority MPs will not support its approval.
"Our position on the $250 million component remains unchanged, as such unfavourable terms as the $40 million insurance payment and total interest of over $80 million make it too expensive and inimical to the economic interest of Ghana. It is also not programmed in the 2022 budget statement," he stated.
ADVERTISEMENT
On the $750 million component, Mahama noted that after he raised concerns, some effort has gone into renegotiating the costs and terms, which now appear more favourable.
He is, however, unclear on the exact purpose of the loan.
Mahama said the NDC will only support its approval if "evidence of its use for specific growth-related projects leading to improvements in the lives of people is presented."
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
Recommended articles
Train accident photo posted on my social media pages is a photoshop - Peter Amewu
Court jails truck driver 6 months for causing Ghana's brand-new train accident
609 Ghanaians died in first 3 months of 2024 through road crashes - NRSA reveals
Joseph Addo files nomination to contest as NPP Parliamentary aspirant for La Dadekotopon
Dumsor: ECG board members reject PURC GH¢5.8m fine
Woman who claims to have been taken to another world by dwarfs shares experience
Organised Labour threatens to strike May 2 over Tier-2 pension arrears
Nana Addo assures he will prioritize the welfare of cocoa farmers
