Parliament Approves $750m Loan Agreements

Parliament has approved seven loan agreements amounting to $750 million for various projects.

The facilities, which were approved during an emergency sitting, include loans for public sector reforms, COVID-19 response measures, digital acceleration, and food security.

The loans are expected to help enhance Ghana’s economy and mitigate the impact of the COVID-19 pandemic on the country.

One of the approved loans is a $150 million on-lending agreement between the Ghanaian government and the International Development Association (IDA) of the World Bank Group. The loan will finance the West Africa Food System Resilience Programme phase two under the Multipurpose Programme Approach.

Other loans approved include a €170 million agreement between the Ghanaian government and the Development Bank of Ghana for the establishment of the Development Bank of Ghana, a $60.6 million agreement between the Ghanaian government and the IDA of the World Bank Group for the Ghana COVID-19 emergency preparedness, and a $30 million response project.

The Minority Leader, Dr Cassiel Ato Forson, expressed concern over the loans, saying that Ghana was currently insolvent and defaulted in the repayment of its external and domestic debts. He argued that loans should be geared towards productivity and not just consultancy.

However, the Majority Leader, Osei Kyei-Mensah-Bonsu, justified the loans, urging the House to approve them due to their potential impact on the economy. He pointed out that the World Bank is giving the $150 million loan as a response to the food crisis in the West African region, and the project will increase food production and reduce food crisis.

He also noted that food insecurity in one country could affect Ghana, and that the loans would help mitigate such risks.

Story by Nana Kwaku Boffah