The borrowing Finance Minister, Ken Ofori-Atta, is piling on the debt and creaming off big time with his private brokerage firm, Databank Financial services, as his latest haul tops a whopping Ghc1.24billion.
The debt instrument is a 6-year bond that was oversubscribed by 24%.
According to reports the interest rate of 18.80%. and the money secured is expected to finance part of this year’s budget and settle some maturing debts.
The 6-year bond was opened to both resident and non-resident investors according to a report by Accra-based Joy FM.
Already, there are concerns about Ghana’s debt spiralling out of control. Already, the debt burden is a whopping 332.4 billion, almost 77% of GDP.
However, even though concerns have been expressed by both the IMF and the World Bank, Mr. Ofori-Atta only continues to borrow.
Former President Mahama and the MP for Bolgatanga Central, Hon. Isaac Adongo, have pointed out that Ofori-Atta’s addiction to borrowing is due to the fact that his company, Databank benefits anytime he borrows.
He has made Databank a so-called bond market specialist so that anytime the country borrows, particularly on the Eurobond market, his private company gets paid for bookkeeping services that it is supposed to have rendered.