The National Democratic Congress, NDC, Member of Parliament representing Bolgatanga Central, Isaac Adongo, has condemned the Vice President, Dr. Mahamadu Bawumia for justifying government’s decision to borrow $15 billion from the Chinese government.
The MP also described the move as “frightening, scary and reckless,” against the backdrop that the same Vice President criticized the government of former President John Dramani Mahama for contracting a much lesser amount.
According to him, the loan will worsen Ghana’s debt status and adversely affect the country’s economic growth and development.
It would be recalled that the Vice President announced that the government of China has agreed to commit 15 billion dollars worth of investment in Ghana after his return from the Asian country recently.
The VP also added that Ghana was able to secure the commitment due to a new financing model designed by the Economic Management Team.
However, the MP, while speaking on Eyewitness News on Tuesday, condemned Dr. Bawumia for spearheading the agreement to contract the loan despite heavily criticising the former NDC government’s decision to contract a similar loan.
“We are dealing with a country where borrowing $1bn of Eurobond was described by Bawumia himself as very reckless borrowing and he put in perspective the GDP ratio when we were borrowing just $1bn. In the 2017 budget by this government, the debt to GDP of 72% was vilified as the worst this country could ever have, now to add $19bn of an additional loan in such a short period will push our debt to GDP to the region of 120% and 130% of GDP. That is the worst that you can find in the world.
“For a person like Bawumia to now be saying that we should be clapping for him for ditching us into 130% debt to GDP is frightening, scary and reckless,” he noted.