Parliament approves loan agreement totaling US$710 million

Parliament has approved a total of $710 million in an emergency sitting today. MPs were summoned from the Easter break purposely for the 7 loan agreements some of which have been outstanding since last year.

The facilities are a US$60.6 million as a third additional financing for the Ghana COVID-19 Emergency Preparedness and Response Project, US$150 million to finance the West Africa Food Systems Resilience Programme, and €EU170 million for the establishment of the Development Bank of Ghana.

The rest are a US$30 million facility to finance the Medical Equipment Provision Project in response to Covid-19, US$150 million to finance Primary Healthcare Investment Project, US$150 million to finance Public Financial Management for Service Delivery Programme and US$200 million to finance the Ghana Digital Acceleration Project.

The minority side argued against the facilities explaining the government should not be borrowing in this critical time of economic crisis occasioned by reckless borrowing.

The majority however explained the facilities are all targeted at specific projects and thus must be supported.

Speaking to the media after proceedings minority leader Dr. Cassiel Ato Forson questioned the prudence in government contracting loans in these times

Deputy finance minister John Kumah however explained the loans are not new. According to him, the facilities have already been captured on government’s but needed the blessing of Parliament as required by law.

Touching on the ongoing IMF negotiations, John Kumah expressed hope of securing credit assurance from the Paris club to pave way for board level agreement.