$1b syndicated loan: ‘Ghana in a massive hole, we don’t need to dig further’ – Mahama

Former President John Dramani Mahama says Ghana’s is in a hole, economically, and therefore not prudent to continue digging with more loans.

He says the National Democratic Congress (NDC) caucus in Parliament will not approve loans by the government if they are not clear of the intended purpose and prudence of the facility.

“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.

“This informed my announcement that the NDC and the Minority in Parliament would not be supporting the ultra-expensive $1 billion syndicated loan agreement brought to Parliament by the finance minister. Our position on the $250 million component remains unchanged as such unfavorable 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,” Mahama told MPs at workshop in the Volta region.

He added: ” It is also not programmed in the 2022 budget statement. Until the terms are renegotiated to make them favourable and same captured in subsequent budgets, we are unable to support the approval of this $250 million component.

“On the $ 750 million component, which was programmed in the 2022 budget, we note that since I stated our position a fortnight ago, some effort has gone into renegotiating the costs and terms, which now appear more favourable than when it was originally presented. Clarity is however yet to be brought on the exact purpose of the loan”.

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