European Fund Managers must cease granting multi billion loans to already debt-heavy Ghana

Recent news

Interview on Starr Fm Radio

In order to broadcast the STOP BORROWING campaign to more audiences, an interview was granted to  Starrfm radio, which carries an impressive number of listeners and is a leading radio station in Ghana  Dr Kofi Amoah, aka Citizen Kofi, meticulously explained the rationale behind the campaign that: 1. Ghana has over-borrowed and that the present debt load of over usd40 billion is unsustainable and all Govt revenues including Grants from Donor countries can only pay public sector wages, payments on loan principal and interest on loans with little to nothing left for capital expenditure on public works, etc 2. He explained that there is nothing wrong in contracting loans if used and managed properly to earn a return with which to retire the debt; however, in the case of Ghana and other African countries, the projects for the loans are awarded to foreign contractors and consultants who buy the projects key material supplies from outside country and hence having very little impact on  the domestic economy, minimal multiplier effect with no real permanent jobs created 3. He explained that at the end of the project, the foreign contractors depart with their profits and the country is left with a project that produces little to zero returns to the local economy but the country is left with a huge debt with high interest for payment  4. Dr Amoah opined that citizens must be angry and express their true and honest feelings to the govt and the Parliament in order to correct these anti-progress hurdles. Loans must be used to create lasting multiplier effects. As much as possible most, if not all, of the borrowed funds must be deployed within the domestic economy with the clear intention of creating good paying jobs. Workers with good salaries will pay taxes to Govt for servicing the loans and hence avoid the piling up of unserviced and balooning loans!! 5. With the Govt and Parliament not listening and continuing to borrow, citizens have no other choice but to use alternative means to solving the problem... and one of these alternative means is for citizens to galvanize and appeal to the Foreign Banks, Bond Markets and the multilateral financial institutions for them to stop giving loans to Ghana until there’s a clear demonstration of improved debt and expenditure management with the proper attendant loan funds allocation within the domestic economy; and these measures must produce internal multiplier effects in JOBS and EFFICIENCY in production processes!!

Movement For Progress
1 year ago