GhanaStar
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music
No Result
View All Result
GhanaStar
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music
No Result
View All Result
GhanaStar
No Result
View All Result
Home Business

Ken Ofori-Ata Has Caused GHC5bn Financial Loss To Ghana – NDC MPs

June 9, 2017
in Business
Share on FacebookShare on Twitter

The Minority National Democratic Congress (NDC) Caucus in the Parliament of the Ghana says Ghana in the next fifteen years would incur GH?5billion losses in the US$2.25billion domestic bond that was recently issued by the Finance Minister, William Ken Ofori-Atta.

You Might Also Like

Nana Akufo-Addo Has Won 2020 Ghana Elections with 51.7% of the Vote

Online Casino Best-Themed Games

Utilize Reliable Exam Dumps to Attain Cisco 300-320 R&S Certification Easily

Mr. Ofori-Atta, Wednesday, told Members of Parliament when he appeared on the floor of the House to deliver a statement on the bond transaction which has become a controversial issue in some Ghanaian quarters that the said transaction is impacting positively on the economy.

For instance, he said the 15 and 7 year old bonds have triggered a downward trend in the cost of borrowing and also strengthened Ghana’s current account and built its international reserves. The Cedi to US Dollar rate which was 4.46 in February 2017 and 4.34 in March 2017 appreciated to 4.19 as at end of April 2017.

The bond, he further noted, has also had a significant impact on Ghana’s credit ratings. This, he added, is evidenced in Fitch Ratings a few weeks ago where the rating agency affirmed Ghana’s sovereign rating at B and revised the outlook from negative to stable.

“This is significant good news for investors and the economy,” he noted.

Additionally, he said the bond which was issued domestically has eliminated the costs associated with cross continental road shows and saved the country about GH?600million in interest payments and reduced refinancing costs associated with short term borrowing.

The Finance Minister was summoned to Parliament by the Speaker, Rt. Hon. Prof. Aaron Michael Oquaye, when the Minority Leader, Haruna Iddrisu moved a Half Hour Motion on May 31, 2017, to provide detailed information on the recent $2.25billion bond including the full complement of documentation related to the issuance, participants, the utilization of the proceeds and currency in which the bond was settled.

However, the Ranking Member of the Finance Committee and NDC MP for Ajumako-Enyan-Essiam Constituency, Mr. Cassiel Ato-Forson, responding to the claims by the Finance Minister argued that the said US$2.25billion bond which was issued with a coupon rate of 19.75% cause the country a whopping amount of GH?5billion in fifteen years.

“I don’t know how they arrived at GH?600million. Looking at April 2017, the short term yield as the Minister alluded to used part of the proceeds to switch. Mr. Speaker, if he is switching, as at April 17, the 91 day has a coupon rate of 16.35% and the 182 day has a coupon rate of 16.7%. We are borrowing at 19.75% and we are hearing that we have made savings because of the switching. Per my calculations, if you borrow an amount of US$2.25billion at 19.75 and you used it to switch short term debt of 16.35%, you have caused the State GH?330million losses per annum. If you multiply it by 15 years [GH?4,950,000,000] the total loss to the State is GH?5billion. So, where is the savings coming from?”he quizzed.

Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.

Tags: Aaron Michael OquayeAaron Mike OquayebondBusiness_FinanceCassiel Ato ForsonCouponfinance committeeFinance MinisterFitch RatingsghanaHaruna IddrisuManagement Consulting ServicesministerMinority LeaderMinority National Democratic CongressNational Democratic Congress (NDC)NDC MPOfori AttaParliament of the GhanaspeakerSpeaker Rt.William Ken Ofori-Atta

Related News

Covid-19: President Akufo-Addo To Address Ghanaians Tonight

Nana Akufo-Addo Has Won 2020 Ghana Elections with 51.7% of the Vote

by ghanastar
December 9, 2020
0

Nana Akufo-Addo won Ghana’s national election, becoming president-elect at the third attempt and cementing the country’s reputation as a standard-bearer...

Online Casino Best-Themed Games

Online Casino Best-Themed Games

by ghanastar
July 9, 2020
0

Whether you like casino games or not, we can all agree that people like themes, and they express their lover...

Utilize Reliable Exam Dumps to Attain Cisco 300-320 R&S Certification Easily

by ghanastar
July 14, 2020
0

Cisco’s certifications are among the most popular credentials for IT professionals. The company is considered to be one of the...

Burkina Faso: Attack on Church Kills at Least 14

by
December 1, 2019
0

At least 14 people have been killed after gunmen opened fire inside a church in Burkina Faso. The victims were...

Next Post

I Did Not Goof Mentioning Names

Joey B Joins Ghanaian Contingent In Coke Studio Africa House

Categories

  • Africa & World
  • African Music Lyrics Directory
  • Business
  • Business Directory
  • celebrities
  • Computing
  • Diaspora
  • Entertainment
  • Events
  • Feature
  • Featured
  • Ghana Elections 2016
  • Headlines
  • Health
  • International
  • Internet
  • Jobs
  • lifestyle
  • Music
  • News
  • Offbeat
  • Opinion
  • Politics
  • Profiles
  • Religion
  • Security
  • Seth Terkper
  • Smart Home
  • Social Networks
  • Sports
  • Technology
  • Top Stories
  • World News

Tags

accra addo africa Association football Banks - NEC business Business_Finance chairman Donald Trump economy education Entertainment_Culture environment Geography of Africa ghana Ghanaian people government Government of Ghana Human Interest John Dramani Mahama john mahama Law_Crime mahama minister MPs elected in the Ghanaian parliamentary election Nana Addo Nana Addo Dankwa Nana Akufo-Addo National Democratic Congress National Democratic Congress (NDC) New Patriotic Party New Patriotic Party (NPP) nigeria politics Politics of Ghana president Social Issues Social Media Social Media & Networking sports United Kingdom United Nations United States Vice President War_Conflict

Recent Posts

  • Government of Ghana Unveils Official Portraits of President John Dramani Mahama and Vice President Prof. Naana Jane Opoku-Agyemang
  • Who Is the Woman (Sheena Gakpe) in Sarkodie’s Latest Hit “No Sir” and Why Everyone Is Talking about It
List of Ghana Holidays for 2020
Ghana Geocoding
Ghana Cedis Exchange API
Ghana Maps Service
Toyota Cars Auto Auction History
  • African Music Lyrics Directory
  • Business Directory
  • Diaspora
  • Top Stories

All rights reserved © 2021 GhanaStar.com

No Result
View All Result
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music

All rights reserved © 2021 GhanaStar.com