With Ghana’s attainment of a lower middle income status, concessional funding from both donors and development partners has started dwindling, according to government.
It is as a result of this that Parliament has recently given the green light to government to carry on with processes to issue a $1 billion eurobond from the second quarter of this year.
Government says it wants to use proceeds from the bond to finance debts that are maturing and also use part to finance projects detailed in the budget.
Given the aforementioned, there is the likelihood that government would engage Barclays, Stanchart and Duetsche bank as transaction advisors for the eurobond.
“The national Democratic Congress (nDC) government has even deferred payment of MPs Common fund from half of 2014 to 2017 simply because the government says the country is broke and therefore cannot pay the common fund,” Dr. Mathew opoku Prempeh, Manhyia South MP recently revealed.
He attributed the economic crunch to corruption by government officials and mismanagement, which has been the hallmark of the Mahama administration.
According to him, since MPs were not getting their common funds to promote developmental projects, the growth of the various localities in the country would be retarded.
Government, which has imposed a lot of burden on the country’s private sector through high taxes, wants the private sector to support the provision of infrastructure to promote the country’s socio-economic development
Source: The Finder
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