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| Photo credit: ghanaweb.com |
The opposition party in Parliament, known as the Minority, has voiced its disagreement with the government's plans to either merge or collapse the National Investment Bank (NIB) and the Agricultural Development Bank (ADB). The government has been working towards this merger for some time in order to establish the National Development Bank, as both banks have faced challenges.
During a press conference at Parliament, Isaac Adongo, the Minority Spokesperson on Finance, claimed that this plan is a cover-up to sell off the merged banks to government allies as part of a state capture agenda. He stated on September 28 that this move is not in the best interest of NIB and accused the government of attempting to acquire NIB and ADB through backdoor means.
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The Minority has demanded that the government repay the debt owed to NIB and implement measures to ensure its viability. Adongo proposed restructuring NIB's balance sheet by swapping the government's debt owed to the bank for equity. He pointed out that while the government claims it lacks funds to capitalize the bank, it has already provided NIB with 500 million in debt and an additional 800 million. Adongo suggested using this 1.3 billion owed by the government as a contribution towards capitalization, allowing the issuance of shares to move the funds into equity.
Adongo also warned that if NIB is collapsed and subsequently acquired by ADB, around 800 jobs would be lost.
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