Minority Resists Gov’t’s $500 million Loan Facility
The Minority in Parliament has opposed a $500 million loan facility the government is seeking to acquire.
The facility includes $150 million for Primary Health Care Programme, $200 million to finance the Ghana Digital Acceleration Project and $150 million to support public financial management for service delivery programmes.
According to the Minister for Communication and Digitalisation, Ursula Owusu Erkuful, the facility from the World Bank has already been approved by its Board of Directors who are “willing and eager to give this money” to the country.
Thomas Nyarko Ampem, a member of the Finance Committee of Parliament and the Minority, explained the decision is meant to help the country retain sustainable debt levels.
As of July 2022, data from the Bank of Ghana said the country’s debt stood at GHC402.4 billion.
“The government has brought three different loan agreements. One for US$200 million and two each for US$150 million. We have taken a very simple position; that looking at our debt situation, we are unable to support further approvals for further loans because we believe that if you are in the hole you don’t continue to dig further”, Nyarko Ampem told the press.
He explained, “They are requesting US$150 to support some GIFMIS projects that were started previously and if you look at it critically, most of them are going into consultancy and other things. We don’t see clearly what these funds are going to add to what we already have. (punandjokes.com) Another one {is going into} a digitisation project that makes some sense. Unfortunately, we have approved US$115 million for rural connectivity that has not really been implemented fully. We want to see that all these things are done fully.”
Ursula argues that the loan for the Ghana Digital Acceleration process will provide funding for entrepreneurial skills development, training and startup capital to stir up the innovation and the tech ecosystem of the country as well as provide funding to extend connectivity to some hard-to-reach areas in the country.
She said, “in my intervention before the committee, I indicated that we are having economic challenges, but digital technology provides us with a ladder to climb out of the difficulties we currently face so even though the Minority has taken a decision that they will not approve any loans presented before the Finance Committee, I urge them to take another look at their position, but we are going to have further engagements with them.”
Nyarko Ampem noted that his outfit isn’t against loans however they are up to ensure that the country sustains prudent debt levels.
“We are waiting for the Finance Minister to give us a clear understanding path to take us out of this debt situation. We need to know our debt sustainability plan otherwise we in the Minority are clear that we are unable to support additional borrowing by this government.”
Source: opemsuo.com/Hajara Fuseini
