Minority to vote against US$1 billion syndicated loan from foreign banks – Mahama

John Mahama speaks at GIMPA GECC event

Foreign banks pledge to support Ghana with $1 billion syndicated loan

NDC MPs to oppose non-concessionary borrowing

Former president, John Dramani Mahama, has said the National Democratic Congress (NDC) will not rally its support behind the US$1 billion syndicated loan agreement government is seeking from foreign banks.

He believes the governing New Patriotic Party has collateralized most of the country’s revenue streams which has placed the economy in a difficult position.

Mr Mahama added that collateralization of the gold royalties - Agyapa Royalties transaction, is also a decision that cannot be supported by minority lawmakers.

Speaking on the state of the Ghanaian economy at an event in Accra on June 30, John Mahama stressed that minority lawmakers will vehemently oppose the yet to be tabled US$1 billion syndicated loan agreement.

“The NDC cannot lend support to the US$1 billion syndicated loan agreement and our MPs are poised to vote against in Parliament,” he said.

“One of the rationales for seeking the loan is the need for foreign exchange to shore up our reserves which has dwindled considerably in the last few months but this government knows that the wisest thing to do in these circumstances is to improve our reserve position and that is to seek balance of payments support from multilateral institutions like the IMF,” he added.

He explained the support for balance of payments by the IMF will come at concessionary rates and very minimal costs which will help stabilise the economy.

“This will certainly be nowhere near the astronomical and prohibitive costs that is associated with this US$1 billion syndicated loan. We wish to serve notice going forward that the NDC in parliament will not support any further non-concessionary borrowing or loans that are not project specific with clear and unambiguous terms with the benefit to our nations,” John Dramani Mahama concluded.

MA/ESA