The proposed $50 billion centenary bond between Ghana and China has been criticised by some quarters.
The Government of Ghana has said that discussions surrounding the proposed $50 billion centenary bond are still at an analysis stage.
The proposed bond between Ghana and China has sparked debate among the public due to some uncertainties.
However, the Information Minister-designate, Kojo Oppong Nkrumah, has moved to clarify issues, insisting no firm decision has yet been made.
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According to him, Government is still deliberating and analysing the proposed centenary bond to ascertain its viability.
“At this stage, we are at the consideration stage, we are raising a number of questions to do some analysis. For example, is a centenary bond a good idea? If it is, how much can our economy afford? What will be the repayment schedule for example? What are the implications on debt sustainability? We have to go through a series of processes to arrive at a position, and then that position will be announced,” Mr. Oppong Nkrumah told Accra-based Class FM.
“The president has just signed eight MoUs and supervised two other contracts, those are the big things we can speak concretely to today. If he additionally mentioned that we are looking at the possibility of this in the future and if it happens we encouraged the Chinese to come on board, I don’t think we can reduce that to a full conversion now and say that government has decided to issue a $50bn bond and, therefore, what does the Minority think of it? No.”
President Akufo-Addo mentioned during his state visit to China that “the Ministry of Finance and the economists in Ghana are looking at floating a $50 billion Century Bond”.
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“This will provide us with the resources to finance our infrastructural and industrial development. We are hoping that, at some stage, China will interest itself, and take a part of it as China’s contribution to Ghana’s development,” he added.
However, the Minority in Parliament has kicked against the proposal to sign a centenary bond with the East African nation.
The Minority argue that Ghana is currently not in good standing to absorb such a huge facility.