Govt to stop borrowing for state institutions

The Government will no longer borrow on behalf of state organizations that have the capacity to contract and pay back their loans.

The decision comes on the back of intense cabinet deliberations on the highlights of the 2014 budget which will be read next week. The move is expected to put the central government’s financial portfolio in better light.

Addressing the media Thursday, Minister of Information and Media Relations, Mahama Ayariga, said the country appears to be piling up debts due to some of the avoidable loans central government contracts on behalf of state organizations.

“We are moving to the point where most of these institutions will be asked to contract loans on their own balanced sheet and make sure that they are able to make a case on their own behalf to the lender”

Mahama Ayariga said this way these debts will not be captured as national debts which will end up sabotaging the investment outlook of the country.