Dr. Mahamudu Bawumia, Vice-Presidential candidate to Nana Akufo-Addo explains why it is false for the NDC to claim that it has only borrowed 17billion dollars and not 27billion as the facts show.
He explains, "If you borrow GHC100 today, it would mean that you have borrowed the equivalent of $100 dollars and you should be able to do projects worth $100. If in a few years the exchange rate depreciates to 3 cedis to one dollar, then the 100 cedis you borrowed a few years ago would be worth some $33. This does not however mean that you did not borrow the equivalent of a $100 dollars initially and we should expect to see a $100 worth of projects. You cannot suddenly claim that you actually borrowed $33 a few years ago and so you are only to account for $33 worth of projects. Using current exchange rates in determining the equivalent amount borrowed is misleading because it ignores the value of the debt at the time it was borrowed."
Licence : All Rights Reserved