Bank of Ghana grants an overdraft to government – John Kumah
Cassiel Ato Forson must read to understand the content in mid-year budget – John Kumah
A deputy finance minister, John Kumah, has dispelled allegations by the minority in parliament asserting that the Government of Ghana had colluded with the Bank of Ghana to print new cedi notes without proper approval.
According to him, the allegations made are false and have no foundation in the claims made by the Deputy Ranking Member of Parliament’s Finance Committee, Dr. Cassiel Ato Forson.
Addressing journalists outside parliament on July 26, the deputy finance minister explained that the Bank of Ghana has only granted an overdraft to government – a move which he says is within the laws of Ghana.
“It is never true that government has hidden information about printed cedi notes and there is no basis for that. Nobody should impune the integrity of the finance ministry or finance minister.”
“The information as stated in the 2022 mid-year budget is a public document which we have given out to the public and it is his [Cassiel Ato Forson’s] responsibility and every Ghanaian’s responsibility to read and understand the content,” he added.
He further clarified that Section 30 of the Bank of Ghana Act allows for the central government and the Bank of Ghana to operate on overdraft basis which is within the laws of Ghana.
“On the Bank of Ghana's own balance sheet, they can give overdraft to government as a loan to be paid within a specified period and this is not the first any government has taken that route,” he explained.
John Kumah further bemoaned the assertion made by the minority in parliament over the matter and described them as incompetent.
“Today, we are being told that the new economics from the NDC is that the when Bank of Ghana gives overdraft to the central government, it is called printing of money… I am surprised and this is not economics. This also shows their [NDC] incompetence and lack of appreciation of the situation,” he concluded.
MA/FNOQ
