Terkper calls out Govt’s unwise move in abandoning Sinking Fund
Former Finance Minister, Seth Terkper, has blamed the government’s inability to pay its debts on a decision to stop allocating funds into the Sinking Fund set aside to pay for Ghana’s Eurobonds.
Terkper explained that the government’s decision to abandon the Sinking Fund in 2017 exposed the country and forced the government to rely on the Stabilization Fund, leading to the Bank of Ghana having to frequently step in to support the government’s expenditure.
The former minister highlighted the importance of the Sinking Fund, stating that it provided the government with the necessary space to make payments for its Eurobonds.
He argued that abandoning the fund was an unwise decision, especially with the recent discovery of three new oil blocks.
Recalling the government’s mismanagement of funds, Terkper stated that the government stubbornly refused to impose a cap on the Stabilization Fund, allowing monies to be drawn without accountability.
Terkper questioned how all the resources were used, calling for the government to act like a middle-income country and put buffers in place to secure the country’s financial stability.
