The New Patriotic Party\u2019s (NPP) 2016 vice presidential candidate, Dr. Mahamudu Bawumia has alleged that Ghana has been sanctioned by the African Development Bank (AfDB) over non-payment of its debt to the institution.<\/p>\n
[contextly_sidebar id=”zizmSGyLWq5rJNxmHAtyznM1e7PTvsV5″]The AfDB according to him, has therefore suspended the granting of new loans and disbursement of loans for on-going projects to Ghana.<\/p>\n
\u201cThis sanction means that signature of new AfDB loan agreements, disbursements on all AfDB on-going projects and the granting of any new loans have been suspended until the situation is rectified,\u201d he said.<\/p>\n
Speaking at the Distinguished Speaker Series at the Central University College on the topic: \u2018IMF Bailout, Will the Anchor Hold?\u2019 Dr. Bawumia disclosed that the sanctions took effect in January 2015.<\/p>\n
The AfDB sanctions according to Dr. Bawumia have joined Ghana to an exclusive list of nations currently under AfDB sanctions.<\/p>\n
The other countries on the AfDB\u2019s exclusive list are Somalia, Sudan, Zimbabwe, and Djibouti.<\/p>\n
The former Deputy Bank of Ghana Governor further stated that Ghana\u2019s arrears on its AfDB debt obligations \u201conly serves to emphasize the pressure on government cash reserves as well as the poor debt management.\u201d<\/p>\n
He argued that it is unwise to treat external debt obligations \u201cthe same way as you treat your obligations to the NHIS, DACF, GETFund or Road Fund.\u201d<\/p>\n
Economists had warned that the government will be unable to repay its debts if it does not cease its continuous borrowing.<\/p>\n
But the government defended its actions<\/strong><\/span><\/a> saying, the funds were being used for developmental projects across the country.<\/p>\n Figures from the Central Bank indicate that the country\u2019s debt as at August 2014 stood at almost GHC 44 billion and within the six-year reign of the National Democratic Congress (NDC), the country\u2019s debt stock has increased by GHC66.6 billion.<\/p>\n According to Dr. Bawumia, interest payments alone on the debt would amount to GHC9.57 billion.<\/p>\n <\/p>\n By: Efua Idan Osam\/citifmonline.com\/Ghana
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