We never borrowed from China, it was an agreement - Bawumia clarifies

We never borrowed from China, it was an agreement - Bawumia clarifies

- Vice president Bawumia has maintained that the $15 billion agreement with China is not a loan

- The vice president claims it was a joint venture to boost Ghana’s economy

- Click here for the latest stories in Ghana

Vice president Mahamudu Bawumia has taken to the stage to explain what exactly goes into the $15 billion cash which is to be delivered by the Chinese government.

We never borrowed from China, it was an agreement - Bawumia clarifies

We never borrowed from China, it was an agreement - Bawumia clarifies

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The government has faced severe criticisms since the trip by Bawumia to China as many political critics say government did go and borrow a loan from the super-power – a development which they claim would have dire consequences on the economy.

But Bawumia, upon arriving back in the country, addressed a crucial conference which was the Africa-China Joint Research and Exchange program where he used simple illustrations to explain the $15 billion cash by the Chinese government stating that it was not in any way a loan but rather a joint venture.

Yen.com.gh brings to you the exact words of Bawumia at that very conference:

i. This is a new model that does not add to our debt stock. It is a win-win situation for all. But we must negotiate well and eventually the agreement will be put before Parliament for approval.

ii. I should add that because as a country, we have been so used to the old model of borrowing from China, many analysts have not understood this new paradigm.

iii. Let me state again that what we are proposing, and the agreements we have reached so far, are not new loans but rather joint venture proposals using less than 5% of our refined bauxite reserves.

iv. We are using this small fraction of our bauxite reserves not for the benefit of one individual or company but for the benefit of the entire nation.

v. Our trip was purposeful. We came back with some leading Chinese companies and agencies of the Chinese government signaling their interest in our agenda and with agreements totaling $15 billion.

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Source: Yen.com.gh

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