$2.5bn Energy Bond: Ghana Now A Laughing Stock – Minority

The minority in parliament claims Ghana has become a laughing stock in the International community following the under subscription of the 2.5 billion dollar energy bond.

Addressing the media Wednesday, minority spokesperson on Finance Casiel Ato Forson argued that the Finance Minister Ken Ofori Atta has caused financial loss to the state to the tune of 1.2bn cedis as a result of the under subscription.

Government failed to meet its target for the first tranche of the bond after a second attempt.

The managers ESLA which has been given the mandate by Government to issue the bond were seeking to raise 6 billion cedis under two separate bonds.

But it accrued a total of 4.6 billion cedis after it closed the auction last Friday.

The 7-year bond received the targeted 2.4 billion cedis while the 10-year bond accrued about 2.2 billion cedis, below the target of 3.6 billion cedis.

The managers also accepted an interest rate of 19.5% for the 10-year bond.

Proceeds of the bond are to be used to clear the debt in the energy sector which as at December 2016 was 2.5 billion dollars.

Ato Forson, who is also the Member of Parliament for the Ajumako Enyan Essiam in the Central region argued the development is an indictment on the Vice President Dr. Bawumia who heads the economic management team.

“This monumental failure is a classic vote of no confidence in the economy and the economic management team led by the vice president of the Republic. And let me say that, I hope and pray that after saying this, the vice president who is known for attacking people will not come and attack my person.

“He occupies the office of the vice president now, so I will plead with him to watch his temperament. His temperament is not befitting of a vice president…[the] world number one reader cannot even raise a bond that anyone can do.

“It is interesting Ghana’s number one reader cannot even raise a $6billion bond yet he brought something that has put Ghana to shame. So Mr. Vice president we need you as the chairman of the economic management team to come and answer. We require that from your office and the finance Minister to come and answer.”

source: starrfmonline