The New Patriotic Party (NPP) Minority Caucus in Parliament has raised objections to the US$360 million loan facility between the Government of Ghana and the World Bank Group.
The Minority accused the ruling National Democratic Congress (NDC) government of lacking transparency and clarity regarding the specific projects the funds intended to finance in the Budget.
The Minority insisted that the government was being disingenuous about the true purpose of the loan facility.
Mr. Alexander Afenyo-Markin, the Minority Leader, while contributing to the debate on the floor of Parliament on Tuesday, said the NDC MPs, while in opposition, bastardised the then NPP government of borrowing too much to increase the country’s debt stock.
“You see, posterity and Karma are catching up with you. You’re not being consistent and principled,” Mr. Afenyo-Markin stated.
Mr. Kojo Oppong Nkrumah, the MP for Ofoase Ayirebi and the Ranking Member on Parliament’s Committee on Economy and Development, accused the government of deliberately using vague language to disguise the transaction even though it was a loan facility.
“Mr. Speaker, the government must exercise candour and full transparency in what it is doing. There is an attempt to obfuscate the transaction and hide it as a financing agreement when in actual fact, is a loan facility,” he stated.
He said further: “If you notice the communication that has been associated with this facility, be it in the media or even here in the chamber, on the order paper and the report, there is an attempt to obfuscate it.
“This is a loan of $360 million that this government is taking, but because they want to hide it, they are deliberately describing it as a financing agreement.
“We understand what financing is. We do. We understand what it is. But, Mr. Speaker, in this chamber over and over again, when the order paper appears, we talk of a loan agreement.”
The facility, presented to the House by Mr. Thomas Nyarko Ampem, Deputy Minister of Finance, is intended to support macroeconomic stability, restore economic growth, reduce inflation, and enhance the livelihoods of citizens.
Parliament on Tuesday, July 1, approved a $360 million financing agreement between the Government of Ghana and the World Bank’s International Development Association (IDA) as part of the Second Resilient Recovery Development Policy Financing to support Ghana’s 2025 budget.
The Deputy Finance Minister said the funds from the Financing Agreement would be used to pay arrears owed to road contractors, ensure a safety net for the economy, support vulnerable groups and ultimately alleviate poverty in the country.
The financing agreement aligned with the ongoing International Monetary Fund (IMF) programme started by the New Patriotic Party (NPP) Government, in2023, which the Government of Ghana requested a US$900 million.
The World Bank disbursed the first tranche of US$300 million to the Government of Ghana on March 27, 2024.
Meanwhile, Mr. Ampem said the government would also bring up another financing agreement of US$400 million in October this year, as part of the country’s economic recovery programme under the IMF programme.
GNA
