Banking Crisis: NDC Knew There Was A Problem And There Was Nothing Gov’t Could Have Done – Bawumia

Vice President Dr Mahamudu Bawumia has said there was little to nothing government could have done to save the collapsed banking institutions.

According to him, the situation was bad and quite frightening as the banks used the liquidity support given to them by the Bank of Ghana (BoG) for other purposes.

This comes after the Akufo Addo led government had been criticised for supervising the collapse of the banks. Opposition National Democratic Congress (NDC) flagbearer, John Dramani Mahama admonished the government insisting they could have saved the banks without necessarily closing them down.

However, Dr Bawumia in an interview with Kwami Sefa Kayi on Peace FM’s ‘Kokrokoo’ morning show said  it didn’t make sense to continue supporting these banks that were suffering even though the situation was sad.

He noted, “It was bad . . . when I saw the numbers at the time it was quite frightening.”

“The NDC was aware there was a problem . . . these were bad practices of government but we had to step in,” he stated.

“By the time we got into office things were unraveling; we were on the brink of the collapse of the system so the BoG had to rescue the situation. This is one of the most important acts that have been done to save the economy.”

Source: GhanaFeed.com