Gov’t Has Not Put A Moratorium On Acquisition Of New Loans – John Jinapor

Deputy Energy Minister John Abdulai Jinapor has indicated that the Government of Ghana has not ceased soliciting loans to revive the economy. Contributing to discussions on the 2014 Mid-Year Budget Review presented by the Finance Minister, Seth Terkper, on the floor of Parliament on Wednesday; Mr. Jinapor reinforced the essence of governments taking loans to facilitate projects and other social interventions. Ghana's rising debt has over the years taken the centre stage of discussions in the media. Addressing Parliament in the 2014 Budget Statement, the Finance Minister hinted of government's plans to put a moratorium on the acquisition of new loans in order to keep the rising debt within acceptable limits. According to the Finance Minister, there would also be a freeze on the award of new contracts and contracting new loans with a change in focus to pipeline items, adding that there would be reclassification and improvement in public debt management. He said no new loans would be contracted for major projects. The Finance Minister again reiterated the point a couple of weeks later when he presented another statement on the floor about the state of the economy. But contrary to the Finance Minister’s statement, John Jinapor, speaking on "Kokrokoo" on Peace FM, pointed out that no government on this planet can abstain from borrowing. According to him, Ghana has not placed any "moratorium" on loans but rather the government has only withheld it for a while and will later resume taking loans to fund projects and ensure development in deprived sectors of the economy. “The government has not put a moratorium on acquisition of loans. Government has not said it won’t solicit for new loans. There is even no government in this world which can say it won’t go for loans. Once you’re a government, you can never say that you won’t take loans.”

Source: Ameyaw Adu Gyamfi/Peacefmonline.com