The borrowing Finance Minister, Ken Ofori-Atta, is piling on the debt and creaming off big time with his private brokerage firm, Databank Financial services, as his latest haul tops a whopping Ghc1.24billion.
The debt instrument is a 6-year bond that was oversubscribed by 24%.
According to reports the interest rate of 18.80%. and the money secured is expected to finance part of this year’s budget and settle some maturing debts.
The 6-year bond was opened to both resident and non-resident investors according to a report by Accra-based Joy FM.
Already, there are concerns about Ghana’s debt spiralling out of control. Already, the debt burden is a whopping 332.4 billion, almost 77% of GDP.
However, even though concerns have been expressed by both the IMF and the World Bank, Mr. Ofori-Atta only continues to borrow.
Former President Mahama and the MP for Bolgatanga Central, Hon. Isaac Adongo, have pointed out that Ofori-Atta’s addiction to borrowing is due to the fact that his company, Databank benefits anytime he borrows.
He has made Databank a so-called bond market specialist so that anytime the country borrows, particularly on the Eurobond market, his private company gets paid for bookkeeping services that it is supposed to have rendered.
Source: whatsupnewsghana