The fate of the Sovereign Bond was uncertain as it became the subject matter of a heated debate on the floor of Ghana’s Parliament the previous day, which led to speculations in the media that the loan facility was going to be thrown out on the basis of the opposition it received from the Minority.
A controversy arose when the Second Deputy Speaker, Ebo Barton Oduro, who was presiding over the House annulled the results of a head count that was won by the Minority on technical grounds after a heated debate on the loan.
The Minority was of the view that the current government has borrowed so much with very little to show for it, citing mismanagement of funds on the part of government.
However, when the Speaker of Ghana’s Parliament, Edward Doe Adjaho put the question for the approval of the loan facility on the floor on Wednesday, the no voice votes from the Minority side was not loud enough this time to warrant another head count. Therefore the yes voices from the Majority side won the day.
The Sovereign Bond, of up to 1 Billion US Dollars, is one of the initiatives designed to achieve government’s refinancing objectives and provide cheaper and long-term resources for financing the 2016 budget.
Up to 750 Million Dollars of the Bond is expected to be used to finance part of a funding gap of about 3 Billion Dollars for the 2016 budget while the rest of the 250 Million Dollars is expected to be used for the refinancing of domestic and External debts.
Source: Clement Akoloh