Japan agrees to resume yen loan portfolio to Ghana

Japan has agreed to resume the Yen Loan portfolio withdrawn following the decision by Ghana to seek Heavily Indebted Poor Countries facility.

This was the outcome of a bilateral meeting of President John Dramani with Japanese Premier Shinzō Abe ahead of Saturday’s opening of the fifth Tokyo International Conference on African Development Summit (TICAD).

Mr Muratala Mohammed, a Deputy Minister of Information and Media Relations, made this known at a media briefing at the Flagstaff House in Accra.

He described it as welcome news for Ghanaians as it would provide a financial relief for the government in financing infrastructural and other development projects.

Mr Murtaka said Japanese Prime Minister said preparatory works towards the resumption of the loan would resume, and stressed that Japan would continue to attach great importance to Ghana’s economic achievements

“Your country is a strong model for other African countries,” the Japanese Premier said.

He also confirmed that Japan is looking at the request from Ghana to support portions of the Eastern Corridor roads project, and indicated his government’s “high hopes for the Mahama Administration and the strengthening of relations”.

Making a case for the resumption of the Yen loan portfolio, President Mahama said while Japan had been a major contributor to Ghana’s developmental efforts, the withdrawal of the Yen loan left a huge gap especially in the financing of infrastructural projects.

He thanked Japan for the various grants and other forms of aid received over the years.

President Mahama noted that that in March and May, two grants to support farmers and the Health for All programme, and an agreement to enhance power production have been signed.

President Mahama expressed his appreciation to Japan for the organisation of the TICAD.

He informed Mr Abe of Ghana’s offer to host the next Ministerial meeting of the TICAD in Accra.

Source: GNA