Ghana Debt: Minority Blocks $500 Million Loan Facilities And Vows To Reject More

Ghana Debt: Minority Blocks $500 Million Loan Facilities And Vows To Reject More

  • The Minority in parliament has vowed to block further loan agreements from the Akufo-Addo-led government
  • The NDC MPs say Ghana's worsening debt situation has made them take that posture
  • MP for Asuogyaman, Thomas Ampem Nyarko, made this known after the opposition MPs blocked two loan agreements

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Members of the Minority caucus have served notice of their intention to block additional loan agreements from the Akufo-Addo-led government.

This comes after the NDC MPs blocked loan agreements to the tune of $500 million that were before the Finance Committee of the house for consideration.

The Minority in Parliament has blocked a $500 million loan facility citing Ghana's ballooning debt situation
L-R: Asuogyaman MP Thomas Ampem Nyarko and Finance Minister Ken Ofori-Atta Image Credit: Hon Thomas Ampem Nyarko (MP) Ken Ofori-Atta
Source: Facebook

Ghana's Debt: Minority Warns It Will Reject Future Loan Agreements From Akufo-Addo Government

The opposition MPs say their reason for blocking such agreements stems from Ghana's worsening debt situation.

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Speaking to the parliamentary press corps on Tuesday, November 22, 2022, MP for Asuogyaman, Thomas Ampem Nyarko, said they won't approve additional loan agreements.

"We have taken a very simple decision that looking at our debt situation we are unable to support further approvals for further loans because believe that if you are in a hole you don't continue to dig further," he said.

Ghana's Debt: Minority Calls On Government To Provide Clear Path On Taking Government Out Of Current Debt Situation

He, however, called on the embattled Minister of Finance to present a clear path to take the country out of the debt quagmire.

The current economic crisis has been attributed to the Akufo-Addo-led government's excessive borrowing, which has taken Ghana's total debt stock to GH¢450 billion in 2022 from GH¢120 billion in 2017.

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Earlier, reported that the Ranking Member of Parliament's Finance Committee, Dr Cassiel Ato Forson, had sounded the alarm bells on the country's debt-to-GDP ratio.

According to him, Ghana's public debt is about 100% of its GDP, which makes it highly unsustainable and scary.

Sounding the alarm bells in a Twitter post on Monday, September 26, 2022, the Ajumako-Enyan-Essiam MP said the country's debt situation is simply unsustainable, making debt restructuring unavoidable.

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