There are no conditionalities to the World Bank loan
-
Finance Minister
By Awudu Salami Sule
On a radio interview today, the
Finance Minister, Dr. Kwabena Duffour revealed that due to
the immense financial reform being embarked upon currently
by the government, there are no conditionalities attached to
the World Bank loan.
He said, the World Bank was impressed with the performance
of the new government after just five months in office which
is why for the first time in Ghana’s history a loan from the
Bretton Woods institution has no conditions backing it.
“We are happy to announce that there are no conditionalities
contrary to some reports insisting that there are numerous
conditions attached to the loan. The World Bank believes we
are performing well considering the short time that we took
over. Our fiscal consolidation program that we indicated in
the budget is working and we have managed to stabilise the
high depreciation rate of the cedi",
Dr Duffour said.
When it was announced that the World Bank has given Ghana a
record loan package of $535 million to shore up its ailing
economy, many economic analysts in the country feared the
conditionalities attached to the loan may be grievous.
Economic analysts
have argued that it was unusual
for the World Bank to give such huge amount as a loan
without any conditionalities attached,
according to Dr. Duffuor.
Dr. Duffuor further noted that,
the loan by the World Bank was an attestation to the
fact the government was on course
and it is capable of meeting its target.
But other economists hold the belief that Ghana's
good fiscal fortunes could
not all have happened within five months and that there is a
longer history to it than has been opined by the Finance
Minister.
The package covers three separate credit facilities aimed at
helping to improve economic governance and stabilizing
Ghana’s economy.
The areas; Economic Governance and Poverty Reduction Credit
(EGPRC), Transport Sector Project and Natural Resources and
Environmental Governance (NREG), were outlined by government
as critical areas of investment
that will immediately put the country on a sound
economic footing.
A sum of $300 million has been
demarcated for the EGRPC, $225million for the Transport
sector while $10million is going into natural resources.
Meanwhile, the International Monetary Fund (IMF), another
Bretton Woods institution, is set to approve a $1billion
package for Ghana on July 15 to help the nation in its
balance of payments situation.
Ghanadot
