Parliament Passes Northern Development Fund Bill

A bill that will establish a Northern Development Fund to provide resources to support accelerated economic growth and sustainable development in the north has been passed by Parliament.

The Northern Development Fund Bill was taken through the third Reading in Parliament yesterday and it is expected that the President will give assent for it to become law.

The 2008 budget made provision for seed money of GH¢25 million for the establishment of a Northern Development Fund to address the development gap between the north and south and to help alleviate poverty in the three northern regions.

Investments by the private sector, strategic infrastructure development in road, energy and water resources are among some of the strategies for development in the area.

The House also passed a Borrowers and Lenders Bill which seeks to provide a legal framework for credit and prohibit certain credit practices.

The Bill will improve the credit relationships between lenders and borrowers and encourage lenders to provide more credit to consumers.

It also empowers the Bank of Ghana or its authorised agents to inspect the books, accounts, documents and transactions of a lender, borrower or employee to ensure compliance with the provisions of the Act.

Another Bill, the Home Mortgage Finance Bill, was taken through a Second Reading, where the merits and principles of bills were debated.

The bill, when passed will, among others, provide a uniform system of home mortgage financing and regulate the activities of financial institutions, which provides financial assistance related to the acquisition of residential property.