Former Finance Minister, Seth Terkper says the National Democratic Congress (NDC) administration of 2013-2016 had an effective plan to deal with the banking sector crisis.
This plan, he argues, would rather have saved most of the indigenous banks instead of collapsing them.
The Bank of Ghana (BoG) revoked the licenses of seven indigenous banks between August 2017 and January 2019.
The BOG said these banks had been mismanaged, leaving depositors at the risk of losing savings. It, therefore, stepped in to save the situation.
Government has been criticised for opting to collapse the banks after Finance Minister Ken Ofori-Atta revealed that it cost the taxpayer some GH¢21 billion to ensure the safety of depositors funds.
The former Finance Minister, Seth Terkper on Monday addressed a lecture organized by the NDC’s Professionals Forum.
He argued that the NDC administration would have handled the situation differently.
Mr Terkper said the NDC administration undertook an asset quality review of the banks, which gave it a sense of the state of the banks.
He admits some malfeasance was discovered, but the appropriate approach would have been to slowly sell the banks’ assets while trying to keep most of the banks operational.
He further stated that the NPP government did not need to borrow to deal with the situation. He claimed the NDC government, through the Energy Sector Levy Act, left some GH¢43 billion available to the government.
“I don’t think we should accept this narrative that we left the current administration to go and borrow to resolve the banking sector crisis. So what happened to the 43 billion cedis? Couldn’t it be used to restructure?” Mr Terkper quizzed.
On the impact of Covid-19 on the economy, the former Minister said the pandemic cannot be blamed entirely for the state of affairs.
The former Minister insisted the current administration has received the most support for a crisis in the nation’s history.
“IMF $1 billion, Bank of Ghana $1.7 billion, World Bank, African Development Bank and others put together $500 to $600 million and counting. A lot of resources have flowed in, and so that is where we must dig deeper. Covid is painful, but a lot of resources have flowed.”
- World Bank classifies Ghana as high debt distressed country; debt to GDP to hit 104%
- In pictures: Hundreds rendered homeless at Ashalaja
- While others mocked me, Seidu Agongo offered to help – Kofi Amoabeng
- ‘Suck a breast within October’ – Health expert advises men
- Police on manhunt for man flogging toddler in viral video
- ‘I have unfinished business with Black Stars’ – Milovan Rajevac
- Child Rights International places ¢10k bounty on head of man flogging toddler in viral video
- President’s son loses army post after Twitter spree
- Pay compensation to affected customers – PURC orders ECG
- Joy News’ Joojo Cobbinah, NGO sue government over River Offin menstruation taboo
- 25 killed as bus plunges into gorge in India
- GFA launches Talent Identification and Development Programme
- Illegal miners torture suspected thieves on site
- Suicide is never an option – Funny Face
- #NoToGalamsey:The pledge to put my presidency on the line wasn’t bombast or recklessness – Akufo-Addo
- 2014 World Cup was problematic – Kwesi Nyantakyi
- Driving Schools Association to collaborate with MTTD to clamp down on unregistered drivers
- GOIL donates hospital beds to Asuom Health Centre in Eastern region
- Government not against mining but can’t accept ones that destroy our country – Akufo-Addo
- My government is yet to win galamsey fight – Akufo-Addo
- Global Citizen Festival was successful because of risks taken by organisers – Social Director
- Auctioning of vehicles at Tema Port to go online by end of October, 2022- GRA
- Schools and hospitals in Tetegu shutdown due to flooding situation
- #NoToGalamsey: We have not got the result I was looking for – Akufo-Addo on galamsey fight
- ‘Kotoko and Hearts of Oak collapsed fund meant to support Ghanaian clubs in Africa’- Nyantakyi