Century bond will be accepted after referendum – Minority

Mr Iddrisu

Mr Iddrisu

The National Democratic Congress (NDC) Minority in Parliament will not accept the ambitious $50 billion bond unless it is backed by a national referendum.

The Minority Leader, Haruna Iddrisu, has said.

They insist that the country’s already worrying debt stock made the issuance of the century bond an unwise decision.

“The Finance Minister is to raise $50 billion century bond, a loan payable in 100 years,  we demand the decision can only be subjected to a national referendum before it will have our endorsement as a political party,” Minority Leader, Haruna Iddrisu stressed addressing delegates at the NDC’s youth and women’s conference.

The decision to issue the $50 billion century bond was first announced by President Akufo-Addo when he visited China in September and the move to issue the bond is aimed at accelerating the country’s infrastructure development.

According to Kojo Oppong Nkrumah, Minister of Information designate “there is a proposal for the government to consider a century bond as has been done for example by China, Argentina, Austria, Ireland and Mexico which provides ultra-long-term financing at low rates which helps to principally refinance our current debt stocks.

“But also provides financing for some of the major items we intend to embark on, railway, regional intercity motorway, regional airports, industries requiring financing, the  as well  proposal is being considered,”  he said.

Ken Ofori-Atta, Minister of Finance, has already hinted the next budget reading would reveal processes for issuance of the bond which should also help address major challenges confronting the economy such as the cedi depreciation.

“I think the concept will be in there and the fundraising will begin immediately after the budget, we are excited about it because we have gone through the worst of times as a country and certainly we need to increase liquidity in the system,” he stressed. –citinewsroom.com

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