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50 Billion Century Bond will strengthen our economy when issued-Minister of Finance

Written by  Sep 25, 2018
Finance Minister, Mr Ken Ofori-Atta, has said plans were underway for government to restructure the economy by issuing a $50 billion century bond. This he suggested will contribute to strengthening the falling cedi. He was speaking the parliamentary press corps on Monday where he explained that, “For now, we are structuring what we call the century bond of $50 billion, and a successful century bond will then make everybody pretty comfortable about the future of our needs for both infrastructure and the foreign exchange we need, so that we have more stability”. Mr Ofori-Atta continued: “As you also begin to see the realisation of industrialisation, that means that something like food, which we used to import about $2.4 billion a year, we will begin to cut down on that; that is a lot of savings”. He was optimistic the measures being rolled out by the Nana Addo led administration will strengthen the economy. President Akufo-Addo while on a state visit to China few weeks ago urged that country’s president, Xi Jinping that Ghana was looking at floating a $50 billion Century Bond and was interested in getting China to take part. “The Ministry of Finance and the economists in Ghana are looking at floating a $50 billion Century Bond. 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,” Akufo-Addo told Jinping. Meanwhile, a former Deputy Minister for Finance, Cassiel Ato-Forson, has said that the current state of the country’s economy cannot support the floating of a $50 billion bond. According to him, the economy may grind into serious challenges if the government goes ahead with the plan to float the bond. “Ghana’s economy cannot support a public debt of $50 billion. Debt servicing as we speak at a percentage to total revenue is about 50%. Debt services and wages and salaries takes away the entire revenue of the country so how are we going to service that debt. Are they going to borrow to service that debt? What is the size of the economy of Ghana? It is less than $50 billion. It is not applicable,” he said.
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