Communications Director for the New Patriotic Party (NPP), Yaw Buaben Asamoa, has explained why the ruling government has borrowed more than any other government in its three years of assuming office.
According to the Adentan Member of Parliament, the government had to borrow so much to ‘fix’ the bad economy bequeathed it by the erstwhile NDC administration.
Mr Asamoa has argued that Ghana’s bad debt, profile coupled with structural weaknesses in the economy, forced government to borrow more.
“Structural weaknesses in the economy and the debt profile handed-over to us by the NDC caused us to borrow to fix the economy, we borrowed to exit IMF’s Extended Credit Facility (ECF) programme, we also borrowed to clean-up the financial sector and all these have added to the public debt,” he intimated on Nnawotwe Yi on Adom TV Saturday.
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Mr Asamoa also noted that the continuous low performance of the cedi against the dollar had contributed to the increment of the public sector debt.
“Fluctuations in the exchange rate has accounted for GHS 60 billion of our public debt,” he noted.
Speaking further he denied assertions that the NPP was against borrowing while in opposition, explaining that what the NPP was argued for was responsible borrowing.
“We didn’t say no borrowing but responsible borrowing, when you borrow you need to invest it in productive areas of the economy so you won’t have to go and borrow again,” he explained further.