‘Don’t borrow long-term without devt plan’

 Dr Gatsi

Dr Gatsi

The government has been cautioned against long-term borrowing without a long-term development plan to ensure that the monies received are put to proper use.
Rather, it should engage in such long-term borrowing based on the development agenda approved by Parliament.

Dr John Gatsi, Senior Lecturer, University of Cape Coast cautioned in an interview explaining that should be the case since using natural resources as a mortgage for the country.

“You need to know the commodity goes through volatility in terms of price and when such things happen, they pose challenges for the country, we’ve seen that for Argentina and Zambia and it cannot be different for Ghana,” he stressed.

President Nana Akufo-Addo while on a state visit to China told President Xi Jinping Ghana was looking at floating a $50 billion Century Bond and was interested in getting China to take part.
The development has raised a lot of questions among Ghanaian investment analysts and other stakeholders.

While some are concerned about the apparent salvation Ghana and other African countries have found in the trade with China, others believe specific request to China over the planned $50 billion bond will not be in the interest of the nation.

However, Dr Gatsi indicated that following the declaration by Senior Minister Osafo Maafo that the government would only be motivated by the promises it made to the citizenry and not long-term development plan, the $50 billion bond could be deemed inappropriate.

“We do not have long-term development plan, during the Senior Minister’s vetting, he said they were motivated by the promises they made to Ghanaians and will not be entangled by a 40-year development plan, and clearly government is not interested in the long-term development plan which should guide such borrowing.
“Government must not be allowed to put the country on this path considering the high risk involved because such a decision must only be taken when stakeholders particularly parliament is consulted.

“It is inappropriate to allow one government to put the country on this path bearing in mind the risk this poses to us in the future, it will be in the interest of government to get the attention and buy-in of other stakeholders especially parliament before engaging further in this discussion,” Dr Gatsi bemoaned.  –citinewsroom.com

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