Parliament has approved a US$300 million World Bank facility after the Minister of Finance, Dr. Mohammed Amin Adam, assured the NDC minority that he would address tax waiver concerns amounting to US$449 million.
The minority MPs have earlier resisted the facility over concerns that the government is seeking to retract its request for tax exemptions over US$449 million.
However, the financing facility is critical to the government’s ability to implement the initiatives designed in the 2024 budget. It is aimed at supporting the First Resilient Recovery Development Policy Financing.
Dr. Amin Adam assured the minority MPs that he would revisit the tax waiver request in the next two weeks. This paved the way for the minority MPs to support approving the loan facility.
Addressing members of the House, Dr. Amin Adam clarified the arrangements regarding the new facility. He, however, dismissed claims that the government is preparing some GHC7 billion in tax exemptions for parliamentary consideration.
“Let me take this opportunity to clarify a few issues. First of all, this is not an IMF facility, it is a World Bank facility. It is a concessional facility for 25 years with a grace period of five years and an interest rate of about 1.25 percent. It has a grant element of 26%.”
“It is concessional, and this house is familiar with such concessional facilities. Secondly, it is budget support. This same house approved the financing for the 2024 budget, totaling 61 billion. This loan is one of the facilities we are pursuing to finance the 2024 budget. As we already know, the 2024 budget allocated resources to different projects and programs for the year.”
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“I want to assure them [the Minority] that I will review these exemptions. I will rationalize them, and I’ll report back to Parliament in two weeks. I hope that when I return, honorable members will support me in whatever rationalization we undertake,” said Dr. Amin Adam.