An economist and Director of Research at the Institue of Economic Affairs (IEA), Dr John Kkwaye has opposed the approval of $ 300 million loan by Ghana’s parliament.
Dr Kwakye wondered why the country was adding on to its already debt situation.
“Why are we taking on more loans when we are already heavily indebted and bankrupt? Why don’t we depend on our own resources by cutting our coats according to our clothes?” Dr Kwakye wrote on X.
The $300 million loan from the World Bank, is aimed at supporting the First Resilient Recovery Development Policy Financing. The opposition lawmakers who also opposed the agreement asked the government to withdraw its request for a tax waiver exceeding $449 million. Depsitetheir opposition, the loan eventually approved.
Finance Minister Mohammed Amin Adam assured the minority of his commitment to revisit the tax exemption requests within two weeks leading to the eventual approval of the loan.
The Finance Minister addressing the House said “Mr Speaker, 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. The payment period has a grace period of five years interest of about 1.25 percent and it has a grand element of 26%.”
“It is concessional and this house is familiar with that concessional facilities. Secondly, it is a budget support. This same house approved the financing for the 2024 budget, a total financing of 61 billion. And this is one of the facilities that we are pursuing to finance the 2024 budget. And therefore as we already know, the 2024 budget, through this house, allocated resources to different projects and programmes for the year.
“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,” he said.