The Minister of Finance, Ken Ofori Atta has informed Parliament that government has borrowed 10 billion cedis from the Bank of Ghana (BoG) to help deal with the impact of the COVID-19 pandemic.
Section 30 of the Bank of Ghana Act, 2002, (Act 612) as amended, allows the Minister of Finance, the Controller and Accountant General and the Governor of the Bank of Ghana, to meet in times of emergency to agree on how much government can borrow from the Central Bank.
The law demands that within seven days after the borrowing, the Minister must inform Parliament.
Mr. Ofori Atta, said the pandemic is posing significant challenges to the Fiscal operations of government, and the implementation of the 2020 budget through shortfalls in revenue, additional emergency spending, and tight financial conditions, hence the need for this emergency borrowing from the Central Bank.
Meanwhile, the Minority has rejected this decision of the government to borrow from the Bank of Ghana.
Ranking Member on the Finance Committee, Ato Forson said his side will not give approval for the transaction.