'Family and friends' gov't will consume $1.62bn of $3bn Eurobond – Adongo

He expressed worry that Ghana has moved from an era of borrowing to secure the future of the younger generation, to an era of borrowing for consumption.

He said: "If you take 2019, the $3 billion they borrowed, $2 billion is for the budget. Only $390 million will be spent on capital expenditure. $1.61 billion will go into family and friends, you know it."

Speaking at an economic lecture by the opposition National Democratic Congress' in Accra on Thursday, 4 April 2019, he said: "In 2018, we [Ghana] went to borrow $750 million [but] we spent only $119 million on capital expenditure; $631 million, we spent on consumption. Our children will have to come and pay for this and they [the government] have nothing to show".

The theme for the public lecture was "Ghana's rising fiscal risks, financial crunch and external vulnerabilities: A postmortem of the Extended Credit Facility (ECF) Programme and a preview of the economy without the International Monetary Fund (IMF)".

The government raised three billion dollars to cater for infrastructure development and retire some maturing debt.

According to officials from the Ministry of Finance, government will use 2 billion of the expected Eurobond fund to support government infrastructure budget in the 2019 expenditure pattern of the country

The remaining one billion is expected to be used to clear maturing debts owed by government.

Meanwhile some economist said Ghana could attract a high coupon rate on its 3 billion dollars Eurobond.

According to Professor Godfred Bokpin, the recent activities in the banking sector, coupled with other factors could lead to the coupon rate going up.