Govt to borrow heavily from domestic market – Ato Forson
Ghan’s financial market is capable of meeting the funding needs of govt – John Kumah
A Deputy Minister for Finance, John Ampontuah Kumah, has said the cost of borrowing was not going to increase tremendously as being suggested in the public.
Ex-Deputy Minister for Finance, Cassiel Ato Forson, earlier in a post on social media suggested that interest rates were set to increase because the government was going to borrow heavily from the domestic financial market due to the closure of the Euro Bond market.
John Kumah said Ato Forson's claims that the government borrowing from the domestic market will hurt the economy was false.
According to him, Ghana’s financial market was well positioned to handle the funding needs of the government.
“On domestically focused financing, Hon Ato's view that such an approach is bad for the economy is laughable. Our domestic market has proven capable of meeting the funding needs of the government. Through the numerous policy interventions in the market, the market has now become solid and ready to provide the funding needed to support the budget,” he said
He who said this on his Facebook page on January 3, 2022, added that the government will put measures in place to ensure that its borrowing did not destabilise the financial market.
“In doing so, government in line with the Debt Management Strategy is mindful of the cost-risk trade off and will at all times ensure that fine balance is maintained and to protect the interest of the Republic.”
The duty minister who is also the MP (Member of Parliament) for Ejisu reiterated that interest rates were not going to increase.
“Following the banking sector reforms, our banks have been well-positioned to lend to credit worthy clients at cheaper cost,” he said.
“Government is very certain that interest rates will not go out of the roof. Government through programmes such as YouStart and GhanaCARES will support individuals, businesses and institutions with cheap credit to help them realise their dreams,” he added. Read Full Story
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