Tsatsu Tsikata, a private legal practitioner, criticized the government’s decision to borrow money in order to deal with the current economic problems as being needless.
The government recently received approval from Parliament to fund 750 million dollars from the global market, which it plans to utilize to finish a few road development projects.
The administration is looking into this option as well as others, like the IMF, to restore budgetary stability.
However, the former GNPC CEO said during a memorial lecture given in memory of the late President Atta Mills that revenue from petroleum resources can be relied upon without high-interest government borrowing.
“Investments of the Ghana Petroleum Funds are also needed to be done in a manner that insulates them from being spent in the annual budgets under the Petroleum Revenue Management Act,” says the statement.
“Is it too much to ask that urgent, good faith, cross-party consultations be held in the spirit of President Mills and in his honor to enable all our resource pools to be drawn upon for the benefit of the people of Ghana in the midst of concerns about potential debt defaults and debates in Parliament about commercial loans?”
The government wants to strengthen its reserves and pay for many infrastructure projects across the nation, therefore the $750 million loan arrangement is a component of a $1 billion facility.
The Minority, which had previously rejected the loan agreement, changed its position during the debate in order to prevent what they fear will be the economic collapse of the nation if the loan is not granted.
