Minister for Finance, Ken Ofori-Atta, has justified the government’s GH¢ 10 billion loan from the Central Bank.
Presenting the 2020 Mid-Year Budget Review on Thursday, the Finance Minister noted that the loan was necessary due to the adverse impact of the Covid-19 pandemic on the economy.
He said the pandemic has forced governments around the world to fall on their respective Central Banks for support and cushion their expenditure in the fight against the pandemic.
Government, as part of marshaling resources to fight the Covid-19 pandemic and mitigate its adverse impact, borrowed GH¢ 10 billion from the Bank of Ghana through the purchase of government bonds by the Central Bank.
The loan, according to the Finance Minister, was to help finance the fiscal deficit gap created by the novel pandemic.
Speaking further, the Minister chided the former National Democratic Congress administration, stating that the loan from the Central Bank was even possible due to the responsible implementation and management of both fiscal and monetary policies by the government since 2017.