Blame COVID-19, Russia-Ukraine war, Banking reforms for Ghana’s economic crisis – Bawumia
“We had to undertake a major banking crisis reform. At that time, 2018/2019, it cost almost $7 billion in order to save the banking system. Now the choice that was available was that either you let the banking system collapse or you save there was really no middle way. So we had to save the banking system and the deposits of 4.6 million people [were safe],”
Blame COVID-19, the Russia-Ukraine war, and Banking-sector reforms for Ghana’s economic crisis. Those are the words of Vice President Dr Mahamudu Bawumia, who has been detailing an explanation of what led to the troubling times the country is currently facing.
According to him, the $7 billion spent on the banking reforms could have been channelled into critical sectors of the economy if the previous NDC government had averted its mind to that.
“We had to undertake a major banking crisis reform. At that time, 2018/2019, it cost almost $7 billion in order to save the banking system. Now the choice that was available was that either you let the banking system collapse or you save there was really no middle way. So we had to save the banking system and the deposits of 4.6 million people [were safe],” he said at a public engagement on Wednesday, August 18, 2022.
Touching on the COVID-19 pandemic, Dr Bawumia said the government remained focused on saving lives which came at a very expensive cost to the nation.
“We had the worst economic depression since the 1930s in the global economy. Of course from the President’s point of view at the time of Covid-19, the emphasis was on saving lives and not on fiscal discipline. So yes, we focused on saving lives at great fiscal cost,” he noted.
Explaining further, Dr Bawumia said just when the country was getting out of the woods the Ukraine-Russia began which threw everything out of gear.
He, however, assured the citizenry that all hope is not yet lost as the Akufo-Addo government is committed to resuscitating the ailing economy.
