Former President John Dramani Mahama has served notice that the Minority in Parliament will not support the approval of any new loans that do not have specific terms or purposes.
Speaking at the Think Progress Ghana Launch in Accra on Thursday, June 30, 2022, he took the government to the cleaners accusing it of excessive borrowing.
He believes the excessive borrowing of the current administration has plunged the country’s economy into difficulties.
“We wish to serve notice that the NDC in Parliament will not support any further non-concessionary borrowing or loans that are not project-specific with clear and ubiquitous terms of the benefits to our nation. We will not partake in the destruction of the Ghanaian economy, which this government appears so bent on doing,” he said.
He advised the government to immediately restructure the country’s debts.
When this is done, it will give it some fiscal space to undertake relevant projects, he suggested.
“The real problem with our economy is not that we do not have enough money to spend on priority needs requiring more borrowing, but it is that we have borrowed too much and a chunk of our revenues is going into servicing debts, leaving very little for anything else. The solution to the problem lies in taking the bold steps to restructure our debts and get some relief from pumping far too much revenue into debt servicing on an annual basis and channelling the money into the serving priority areas that will benefit our people directly.”