Ghana News

How do the youth get loans when you’ve borrowed from all the banks – Economist to Finance Minister

Mr. Ken Ofori-Atta

An economist has berated Finance Minister, Ken Ofori-Atta for what he described as his lazy approach to the economic management of the country.

According to Mr David Moddey, the Minister has borrowed all the funds from the various local commercial banks in the country to no avail.

He explained that this is the reason many of the banks are unable to advance loans to graduates to enable them to make their dreams of becoming entrepreneurs a reality in the country. 

Many of the commercial banks have no funds readily available for onward lending to the young people who have workable business plans in the country, Mr Mortey stressed.

He made the revelation while reacting to claims by the Minister of Finance that the government’s payroll was full-on Accra 100.5 FM’s mid-day news.

Mr Mortey said the government is desperate and seems to be throwing its hands in despair over the high levels of teeming youth unemployment in the country hence the decision to urge many of the youth to go into private business.

He wondered how the youth can venture into private businesses when the government itself has borrowed all the funds available at the commercial banks.

“How do the banks finance the business plans of the youth in the country when the finance minister has borrowed all the funds?” he quizzed.   

“Many of the commercial banks have no cash in their vaults for onward lending to young business people as well as young people with laudable business plans,” Mr Mortey stressed.

He noted that Ghana as a country is borrowing like nobody’s business to finance revenue deficit among others. 

He said the finance minister is using the country’s six percent revenue to service its borrowing from the local banks.

This is, he explained has led to the country’s Gross Domestic Product (GDP) growing a little over three percent.

“Inflation has skyrocketed leading to high prices of foodstuffs as well as fuel prices,” Mr Mortey said.

According to him, the economic managers are sleeping on the job

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