Bawumia blames failing economy on Covid-19, Ukraine-Russia war & banking reforms

Just like government spokespersons have been saying all the time, Vice President Dr Mahamudu Bawumia has blamed the country’s economic crisis on the effects of the Ukraine-Russia war.

Apart from that, he mentioned the banking reforms, and the impact of Covid-19 on the globe.

Dr Bawumia revealed on Wednesday that the banking reforms cost the nation $7 billion and admitted the huge amount could have been invested in the country’s economy.

“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.

Regarding Covid-19, the Vice President noted that during those deadly times, government was more focused on saving lives than the country’s fiscal discipline.

This, he indicated came at a very expensive cost to the nation.

“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.



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