Parliament approves $750m loan agreement

This sum is a portion of the $1 billion the government is requesting.

After Kwaku Kwarteng, the chairman of the finance committee, submitted the resolution to the house for approval, the loan was authorized.

The Minority rejected the remaining $250 million because it lacked clarity. Before approving the loan, the Finance Minister and the Roads Ministry were questioned by Kwame Governs Agbodza, the ranking member of the roads and transport committee.

I will therefore urge this House to approve this facility in order that Ghanaians may benefit from the benefits the facility will bring. “Mr. Speaker having carefully examined the agreement which forms part of the government’s programmed aimed at raising funds for infrastructural projects in the 2022 budget,” says Mr. Kwarteng.

The Minority stated: “We have seen that several initiatives under the agreement are being duplicated. This is wrong in our opinion, and we won’t support it. We’re looking for some clarity.

“All we want is for things to be more apparent. The data we have obtained so far is insufficient, Mr. Agbodza told reporters on July 20 in Parliament.

Additionally, Cassiel Ato Forson, the ranking member of the finance committee, had good reason to criticize the nation’s debt levels.

In his opinion, interest payments and amortization ate up all of the tax income that had accrued since the first quarter of the year.

He said that the $12.9 billion raised over the period could not be used to pay interest and amortization for the same period.

Let me state for the record, Mr. Speaker, that I had major reservations about Ghana’s debt sustainability challenges. Currently, Mr. Speaker, statistics from the Ministry of Finance published on its website makes it obvious that Ghana earned a total tax income of GHS12.9 billion in the first quarter. The interest and amortization payments for debt servicing commitments alone totaled GHS13.9 billion.

Following is a list of the projects for which the administration has told Parliament that the 750 million dollars would be used:

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