September 30, 2022

Today in history: taking foreign loans is not a mistake

Finance Minister Ken Ofori-Atta

Finance Minister Ken Ofori-Atta said seeking financial help from foreign financial institutions was not a mistake.

This follows concerns over the huge sums of money the government has secured from the International Monetary Fund during the COVID-19 pandemic.

Speaking in parliament, he said: “Mr. Speaker, we want to take this opportunity to tell the people of Ghana that their president and his team have been thinking a lot since March. We have been thinking about the crisis with a view to using the challenges that Rather, it presents as an opportunity to transform Ghana and for all Ghanaians.

“I am pleased to announce that in the coming weeks the President will launch a gh¢100 billion development program. An ambitious and unprecedented three and a half year program called: Ghana CARES, ‘Obaatan Pa’ will anchor the global transformation of our society.

Read the full article originally published on July 24, 2020 by peacefmonline

Ken Ofori-Atta, Minister of Finance, justified the government’s use of access to loans from foreign entities like the International Monetary Fund (IMF) to improve the economy.

The Akufo-Addo government has been heavily criticized for turning to the IMF and also citing huge sums of money to save the economy from the effects of the COVID-19 pandemic.

During the presentation of the 2020 mid-year budget review in Parliament on Thursday, July 23, 2020, the Minister of Finance told the Legislative Chamber that the country had been hit hard by the new disease and that to revive the economy, the government initiates certain development projects financed by foreign agencies.

He cited huge sums of money that the government is ready to pump into the economy, which has become a hot issue.

“Right Honorable President, when I presented the President’s 2020 Budget, all economic performance indicators pointed to a path of continued consolidation and strong, broad-based growth. The evidence of our superior economic management was clear to all Honorable Members of this Parliament have approved that the Government shall spend Ninety Eight Billion Thirty Six Million Six Hundred Ninety Two Thousand Three Hundred Fifty Eight Ghanaian Cedis (GH¢98,036,692,358) during the course of fiscal year 2020 to advance the agenda of building the gains to drive growth, jobs and prosperity for all.

Mr President, we would like to take this opportunity to tell the people of Ghana that their President and his team have given a lot of thought since March. We have reflected on the crisis with a view to using the challenges it presents rather as an opportunity to transform Ghana and for all Ghanaians. I am pleased to report that in the coming weeks the President will launch a gh¢100 billion development program. An ambitious and unprecedented three and a half year program called: Ghana CARES, “Obaatan Pa” which will anchor the global transformation of our society”.

There are criticisms about the government taking out loans to finance the development projects it intends to introduce to improve the country.

The criticisms are based on the fact that President Akufo-Addo promised Ghanaians that his government would end the culture of borrowing from foreign entities, one of the factors that led to his victory in the 2016 elections. .

But, according to the Minister of Finance, there is nothing wrong with taking out loans if only their objective is to benefit Ghanaians.

He told host Kwami Sefa Kayi on Peace FM’s “Kokrokoo” on Friday morning that the culture of getting a loan facility under the Akufo-Addo government is different from that of the former Mahama administration because the he current administration ensures that the funds are put in good order. use.

“What you use the money for is what’s important… So taking loans isn’t bad, but what you use it for is critical. When you take out a loan and you are investing in your people and building skills for the future I don’t think anything can be better than this Because I believe strongly in the genius of the Ghanaian entrepreneur so we need to build trust people so they can do what they have to do.

“But if you are always afraid of things, as FD Roosevelt once said, fear is the one that will rarely paralyze you. When you look at where we were in 2017 and where we are today in the middle of the COVID-19, even with COVID-19, let’s take it as an opportunity to move forward. But don’t be afraid to run away from the big things,” he insisted.