Government made a profit of $23 million when it transferred some money from the 2014 Eurobond proceeds, Minister of Finance has disclosed.
Seth Terkper said moving out $150 million to a commercial bank was the best decision government took considering the money was lying in the Central Bank account without any interest.
Vice-Presidential candidate of the opposition New Patriotic Party (NPP), Dr. Mahamudu Bawumia alleged that government has caused financial loss to the state by transferring some $250 million being part of the 2014 Eurobond proceeds to a commercial bank.
Dr. Bawumia, who is also a former deputy Governor of the Central Bank said it would have been economically prudent to leave the money in government’s account than being transferred.
Reacting to the issue on the Joy FM’s Super Morning Show, Mr. Terkper denied claim government had caused financial loss to the state by the transferring the money.
Terkper said the money has been in the account for two years without interest but within the space of four months after it was transferred to a commercial bank it made some profit.
He explained this decision marks a major policy shift for the government.
“This is a paradigm shift we want Ghana to benefit”, he Terkper said.
Answering a question about the delay in setting up the Ghana Infrastructure and Investment Fund (GIIF), Mr. Terkper said government wants to make sure it appoints the Chief Executive Officer as well as his deputy before the institution starts operation.
He however did not disclose when the GIIF will start operation.