Former President John Dramani Mahama and former Finance Minister Seth Tekper, considered floating a 100-year bond when the National Democratic Congress (NDC) was in power the last time, for infrastructural projects, Henry Nana Boakye (Nana B), National Youth Organiser of the governing New Patriotic Party (NPP), has said.
According to him, Mr Mahama and Mr Tekper thought it wise to float that long-term bond because, in their view, it was less expensive to service long-term bonds than short-term ones.
Nana B’s claim comes in the wake of criticisms by the Minority in parliament against a consideration by the Akufo-Addo-led government to float a $50billion centenary bond.
President Nana Addo Dankwa Akufo-Addo, while speaking to President Xi Jinping of the People’s Republic of China during his recent state visit, said: “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”, the president said.
According to him, the centenary bond will be one of government’s means of securing long-term financial sources that “will allow us to deal with our infrastructural development, and also realise the vision of a Ghana Beyond Aid.”
However, NDC’s Bolgatanga Central MP, Isaac Adongo told Ghana Yensom on Accra 100.5FM hosted by Chief Jerry Forson on Tuesday, 4 September that: “This government is as visionless as a child, otherwise, how can you go for such a loan without a blueprint telling the people of Ghana what went into that loan.
“What are you going to do with the $50 billion? You can only mention that you want to use it for infrastructure, but in 100 years’ time, nobody will need the things that you want to develop today, so, why take loan for 100 years.”
He added: “I thought the NPP said they were not going to borrow when they come into office but what are we seeing now? Plunging the country into massive debt is what they are doing at the moment.”
But speaking on Adom TV the same day, Nana B said: “…Indeed, under the NDC administration, Seth Terkper tried to raise a century-long bond. They made moves to secure such a bond because they knew that it was less expensive to service a long-term bond than a short-term bond”.
“Speak to any economist and he will tell you that long-term bonds are less expensive to service than short-term bonds.
“The NDC under His Excellency the former president, John Mahama, considered positively going for some of these long-term bonds to improve on Ghana’s infrastructure.”
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