The Vice President Dr. Mahamudu Bawumia has disclosed that the country’s current economic mess can be attributed to the banking sector reforms.
He said the banking sector cleanup cost the nation a whopping $7 billion.
An amount, he argued could have been invested in the country’s economy if not for the negligence of the previous government.
“We had to undertake a major banking crisis reform. At that time, 2018/2019, it cost almost $7 billion in order to save the banking system. Now the choice that was available was that either you let the banking system collapse or you save there was really no middle way.”
“So we had to save the banking system and the deposits of 4.6 million people [were safe],” he said.
The Vice President also said the Russia and Ukraine war and COVID-19 are part of the the challenges the country is facing.
“We had the worst economic depression since the 1930s in the global economy. Of course from the President’s point of view at the time of Covid-19, the emphasis was on saving lives and not on fiscal discipline.
“So yes, we focused on saving lives at great fiscal cost,” he noted.
Dr Bawumia, subsequently, noted that as government was strategising to revitalise the economy, the Ukraine-Russia war started, thus, setting achievements chalked downhill.
The Vice President, however, reassured the citizenry that all hope is not yet lost.
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