Ghana Parliament approves seven loan agreements at emergency sitting
Parliament, at its emergency sitting on Tuesday, approved seven loan agreements for the Government, despite opposition from the National Democratic Congress (NDC) Parliamentary Minority.
The loans include $150 million Financing Agreement between the Government and the International Development Association (IDA) of the World Bank Group to finance the West Africa Food System Resilience Programme – Phase Two.
Others are $170 million On-Lending Agreement between the Government and the Development Bank Ghana (DBG) to support the establishment of a Financially Sustainable Development Bank under the Finance Contract Agreement.
The contract agreement is between the Government and the European Investment Bank for $170 million for the establishment of the bank.
The House approved the Loan Agreement between the governments of Ghana and Republic of Korea for an amount in Korean Won not exceeding the equivalent of $30 million to finance the Medical Equipment Provision Project in response to COVID-19.
A $150-million Financing Agreement between the Government and IDA of the World Bank was also approved to finance the Primary Healthcare Investment Project and another $150 million Financing Agreement to finance the Public Financial Management for Service Delivery Programme.
A $200- million Financing Agreement between the Government and IDA of the World Bank was also approved to finance the Ghana Digital Acceleration Project.
The $60.6 million facility, which the House failed to approve as a third additional financing for the Ghana COVID-19 Emergency Preparedness and Response Project before rising on April 1, was finally approved at the extraordinary sitting.
The facility is a financing agreement between Ghana and the IDA of the World Bank Group.
Mr Osei Kyei-Mensah-Bonsu, the New Patriotic Party (NPP) Parliamentary Majority Leader, and Leader of Government Business, urged members of the House to approve the various loan agreements to enable the Government to prosecute its agenda for the nation’s socioeconomic development.
Touching on the $150 million Financing Agreement to finance the West Africa Food System Resilience Programme – Phase Two, the Majority Leader said the facility would go a long way to increase farmers’ access to agriculture technology.
Dr Cassiel Ato Baah Forson, the NDC Parliamentary Minority Leader, said looking at the huge debts, which had saddled the nation, that was not the time to take more loans.
Mr Haruna Iddrisu, the NDC Member of Parliament (MP) for Tamale South, and former Minority Leader, said the nation should not borrow exceedingly beyond a certain threshold.
Dr John Ampontuah Kumah, a Deputy Minister of Finance, addressing the Parliamentary Press corps, said the loan agreements, which the House had approved, were not new loans.
“These are loans that are already on our books but require parliamentary approval,” he said.
Source: GNA