The Parliament of Ghana has approved a $300 million World Bank loan facility for the First Resilient Recovery Development Policy Financing following intervention by the Finance Minister, Dr Mohammed Amin Adam.
The loan facility from the World Bank according to Finance Minister, Dr Mohammed Amin Adam is very crucial for the successful implementation of some major outlined projects of the government in the 2024 Budget.
The Finance Minister, Dr Mohammed Amin Adam, reacting to the Minority Caucus in Parliament’s initial refusal to support the approval of the loan facility over the government’s decision to grant about $449 million tax waiver to some companies under the government’s one district one factory initiative, expressed his commitment to address the Minority Caucus in Parliament’s concerns.
“I want to assure them [Minority] that I will take a look at these exemptions. I will rationalize it, I’ll review it and I’ll come back in two weeks to report to parliament and I hope that when I come Honourable Members will support me in whatever rationalization we are going to do”.
Mohammed Amin Adam, Finance Minister
The Finance Minister, Dr Mohammed Amin Adam further clarified during the parliamentary session that the financial support is not affiliated with the International Monetary Fund (IMF) but is a concessional facility provided by the World Bank.
He noted that the concessional facility spans for 25-year period, and carries a grace period of five years, coupled with an interest rate of approximately 1.25 percent.
Furthermore, the Finance Minister recounted that the $300 million loan facility from the World Bank also features a grand element of 26 percent, further distinguishing it as a vital resource for Ghana’s economic agenda.
The Finance Minister, Mohammed Amin Adam also emphasized the concessional nature of the loan, reiterating that the Parliament is well-versed in handling such facilities, and further shed light on the terms of the loan facility, emphasizing the favorable conditions, which align with the country’s fiscal goals.
World Bank Loan Facility To Support 2024 Budget
Moreover, the Finance Minister, Dr Mohammed Amin Adam clarified that the funding is specifically designated as budget support, linking it directly to the financing approved by Parliament for the 2024 budget.
He further underlined the significance of the $300 million World Bank facility in executing the outlined financial plans of the government for the 2024 financial year, and further underscored the need for the Minority Caucus in Parliament to support the approval of the loan facility.
As emphasized by the Finance Minister, Mohammed Amin Adam, the approved loan is anticipated to play a pivotal role in addressing key areas outlined in the 2024 budget, supporting initiatives that range from infrastructure development to social programs aimed at improving the livelihoods of Ghanaian citizens.
Meanwhile, earlier before the approval of the $300 loan facility from the World Bank, the Minority Caucus in Parliament expressed deep concerns over the ruling government’s decision to grant about $ 449 million tax exemptions to some companies under the government’s one-district one factory projects.
The Minority Leader and Member of Parliament for Ajumako Enyan Essiam Constituency in the Central Region, in opposing the loan facility from the World Bank asserted that the decision by the government to offer a tax waiver of over $449 million and later go for a loan amount of same is untenable.
Dr. Cassiel Ato Forson vehemently argued that unless the government rescinded its decision to offer the amount of $449 million tax waiver to the various companies under the one District One factory project, the Minority Caucus in Parliament was not going to support the approval of the $300 million loan facility from the World Bank and an additional $150 million for the ongoing Greater Accra Resilient and Integrated Development Project.
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