Any attempt by the Bank of Ghana to sign a Memorandum of Understanding (MoU) with the Finance Ministry for zero financing for the government will be opposed by the Minority in Parliament.

Former Minority leader, Haruna Iddrisu, who represents the people of Tamale South disclosed this information to the media.

According to him, the MoU between the Bank of Ghana and the Ministry of Finance is “laughable”.

“A serious country must be run seriously and run guided by a legal framework that protects the State and protects its institution. The Bank of Ghana is in breach for having to overdraft and lend government beyond the stipulated legislation within the amended Bank of Ghana Act.

“But MoU, what is the weight of MoU within the parameters of the Ghanaian constitution and Ghanaian law?” he questioned.

Minority leader and Member of Parliament for the Tamale South, Haruna Iddrisu

Speaking with Joy News, the legislator said the Finance Minister must be present before Parliament for legislation on zero per cent financing of government by the Bank of Ghana.

As a result, he noted that anything short of legislation passed by parliament will not be accepted.

The International Monetary Fund is, among other things, demanding that government enters into a binding agreement with the Bank of Ghana for zero financing of government programmes.

The bank is said to have provided over GH₵40 billion in support to government in 2021 and according to the central bank, the funding saved the economy from collapse.

Finance Minister, Ken Ofori-Atta on the sidelines of the IMF/World Bank meetings told JoyNews that government has signed a Memorandum of Understanding (MoU) in compliance with the IMF order.

Meanwhile, the Ghana Association of Banks says its members will henceforth grant loans to only productive projects as it defends its decision to participate in the domestic debt exchange programme.

This is despite the participation resulting in severe impairment of the assets of the institutions with some nearing insolvency.