$710 million loan agreement approved by Parliament

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During today’s emergency session, parliament approved a total of $710 million. The seven loan agreements, some of which have been unresolved since last year, were the reason MPs were called back from their Easter vacation.

The funding includes US$60.6 million as a third additional funding source for the Ghana Covid-19 Emergency Preparedness and Response Project, US$150 million to fund the West Africa Food Systems Resilience Programme, and €170 million to establish the Development Bank of Ghana.

The remaining funds will be used to finance the Ghana Digital Acceleration Project, the Primary Healthcare Investment Project, the Public Financial Management for Service Delivery Program, and the Medical Equipment Provision Project in response to COVID-19. These funds total US$150 million each.

The minority group opposed the facilities, arguing that the government shouldn’t borrow at this crucial moment when imprudent borrowing has caused an economic crisis.

However, the majority clarified that because each facility is intended for a particular project, it must be supported.

After the hearing, minority leader Dr. Cassiel Ato Forson spoke to the media and questioned whether it was prudent for the government to make loans during these economic times.

John Kumah, the deputy finance minister, clarified that the loans are not completely new.  He claimed that although the government had already taken control of the facilities, it was still necessary for Parliament to provide its approval as required by law.

John Kumah mentioned his desire to obtain credit assurance from the Paris club in relation to the ongoing IMF negotiations in order to facilitate board level agreement.

Source: Ghanatodayonline.com

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