John Mahama never borrowed from BoG to finance budget – Isaac Adongo

Bolgatanga Central MP Isaac Adongo has said former President John Mahama “was correct” when he said the National Democratic Congress (NDC), while in office, “did zero financing” from the Bank of Ghana.

“Though the BoG Act, as amended, sets the limit at 5%”, the Memorandum of Understanding between the central bank and the Ministry of Finance “set it at zero and was religiously complied with”.

“Don’t confuse draw down of government balances at BoG with BoG financing of government”, Mr Adongo said.

Also on the same issue, a former Minister of Finance, Mr Seth Terkper, denied claims that the erstwhile Mahama administration borrowed from the Bank of Ghana (BoG) to finance the 2016 budget.

“As the Minister for Finance at the time, I wish to clarify that the Mahama Administration did not borrow directly from BoG to finance the 2016 Budget.

“I signed the Non-Lending Memorandum of Understanding (MoU) with the Governor of BoG, as an IMF Conditionality under the IMF Enhanced Credit Facility (ECF) Agreement, even as we went through the Crude Oil Price Shock (2014 to 2016) and Nigeria Gas Supply (Dumsor) crisis…” Mr Terkper said in a statement copied to ClassFMonline.com.