Member of Parliament for Bolgatanga Central, Isaac Adongo, has said the National Democratic Congress (NDC) administration will not be reckless in the face of excess liquidity.
Adongo has insisted that the erstwhile Akufo-Addo administration was under-subscribing on the capital market as a result of loss of trust by the public in the administration.
He says because Ghanaians lost trust in the government, people were not subscribing for the bonds the it was seeking on the capital market.
According to him, Ghana underwent “uncovered auctions” for 16 weeks under the previous administration where the capital market was characterised by a shortfall in what government wanted and what the people were willing to give.
In an exclusive interview with TV3’s Roland Walker on NewDay Friday, February 28, 2025, the Member of the Board of Governors of the Bank of Ghana explained that Ghanaians were skeptical with the government as a result of the lack of trust in the previous administration.
He believes the nation has been saved with the coming of the NDC administration which has suddenly translated government subscription on the capital market from under-subscription to over subscription.
“We have been saved because for over 16 weeks, we were uncovered auctions. When we say uncovered auctions, it’s the shortfall of what government wanted and what the people were willing to give.
“You went to the market, you wanted 2 billion, they give you 1 billion, that 1 billion they didn’t give you, we call it uncovered auction. So assuming that we were not losing out on uncovered auction for 16 weeks and the people were giving us the money, that figure I’m quoting would have been around GHC8billion a week.
“But Ghanaians held the brakes, and lost confidence in you, so that for 16 weeks, you were struggling to borrow excessive monies. Even then, you left us with no choice but to find GHC6billion a week,” he explained.
The former Ranking Member on the Finance Committee of Parliament disclosed that the narrative has changed since the NDC took over few weeks ago. For two continuous weeks, he says the public has been over-subscribing for the government’s borrowing.
He, however, explained that the government rejects the excess subscription because it doesn’t want to be reckless like the previous administration did.
“…but fortunately, because of the trust and confidence that Ghanaians have in us, when we go asking for GHC6 billion, they bring us GHC20billion. Then we tell them we don’t want 20 billion.
“We are responsible enough to know our demand is GHC6 billion. That is the confidence the people of Ghana have in us. We’ll not be reckless in the face of excess liquidity and over liquidity,” he assured.
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