• About Us
  • Contact Us
Account
GTB
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
Account
Ghana Talks Business
No Result
View All Result

Century bond to check overpriced projects – Prof Quartey

04/09/2018
Reading Time: 2 mins read
405
SHARES
Share on FacebookShare on TwitterShare on WhatsApp

The government should be able to finance major infrastructural projects and avoid budget overruns if it is to be successful with the maiden century bond. That is the assertion of Economist at the University of Ghana, Professor Peter Quartey. His comments come on the back of justification for the issuance of the bond by the government following President Akufo Addo’s visit to China.

The President first broached the idea when he met his colleague Xi Jinpeng of China. He said that the century bond is something that the Ministry of Finance and the economic team are contemplating at present.

According to him, the move is to fund the government’s infrastructural projects aimed at achieving a Ghana beyond aid.

Reacting to this, Professor Peter Quartey described the idea as laudable. “There are merits in that in the sense that we see a lot of projects in Ghana that are started but for lack of funds, they are never completed and sometimes when they are completed, the cost escalates by about five times the original cost,” he told Citi Business News in an interview.

“So if you have long term funding that will ensure that you execute your projects at the estimated cost without these cost escalations, then these are the benefits,” he added.

Commenting on the issue, Information Minister designate, Kojo Oppong Nkrumah also said the arrangement which is at the consideration stage, should bring respite in absorbing about 30 percent of the country’s debts. The last Eurobond issued by the current administration attracted investors from European and Asian markets.

Professor Peter Quartey believes the new deal may attract same investors considering the rise in interest rates in the US. The last Eurobond issued by the government attracted an interest rate between 7.6 and 8.6 percent. But Professor Peter Quartey is expecting an interest of below 8 percent.

Nonetheless he further sounded this caution for the government if it is to benefit fully from the plan. “The problem often arises; the fear as raised by some members of Parliament and some stakeholders of society is that we are basically leaving debts for posterity. That may be true if the funds are not used for the intended purpose or if they are not judiciously, then that of course may be a source of worry,” he concluded.

By: Pius Amihere Eduku

Source: citibusinessnews.com

Previous Post

Menzgold assures clients all is well

Next Post

Ex-UBS trader Adoboli detained, faces deportation to Ghana

Related Posts

what is eurobond, ghanatalksbusiness.com

Ghana issues US$3billion Eurobonds in tricky circumstances

06/04/2021
India bans Chinese apps

Why India bans 220 Chinese apps including AliExpress, and what it means for both countries

28/11/2020
business lessons

Ghana commences local production of Personal Protective Equipment as coronavirus cases surge

13/04/2020
President, Akufo Addo

Coronavirus: Ghanaians will not pay water bills for three months

06/04/2020
Cost of covid-19, ghanatalksbusiness.com

Socio-Economic Effect of Covid-19 on the Global Economy-Part Two

04/04/2020
borrow

Impact of Covid-19: Gov’t to borrow GH¢17.9bn in Q2

03/04/2020
Next Post

Ex-UBS trader Adoboli detained, faces deportation to Ghana

Eight Reasons Why your Company should Consider Listing on the Ghana Alternative Market (GAX)

  • About Us
  • Disclaimer
  • Privacy Policy
  • Advertising
  • Contact Us

© 2023 Ghana Talks Business

No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
  • Login

© 2023 Ghana Talks Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In