Banking consultant Dr. Richmond Atuahene has expressed concern about the government’s spate of unbridled borrowing, which he says is eroding and driving many banks into fiscal struggles and eventual bankruptcy.
In his view, the government-backed domestic debt exchange programme has opened up a reckless borrowing window that is being utilised irresponsibly and putting strain on local banks and the Cedi.
He warned that many banks will soon be in trouble if the government’s behaviour is not checked.
“Ever since we went through the domestic debt exchange programme, the government has borrowed as if it’s nobody’s business.
“They use the short-term to finance the long-term as if nothing is going to happen and the way we are going, if we continue the trajectory that we are taking, the banks are going to be in trouble because the government is out of the financial market and it is not paying its outstanding debts,” Dr. Atuahene told Bernard Avle on the Citi Breakfast Show on Citi FM on Wednesday, May 22.
“When I hear them say the economy is growing, from the figures available, I don’t see the growth anywhere because it is the private sector that grows the economy and not the government sector but unfortunately, the private sector is deprived of capital and cannot expand business,” the financial analyst added.
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