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14.12.2011 Business & Finance

Parliament approves 70.4 million dollars ADF loan agreement

Parliament approves 70.4 million dollars ADF loan agreement
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Accra, Dec. 14, GNA - Parliament on Wednesday approved a loan agreement between the Government of Ghana and the African Development Fund (ADF) for an amount of 70.4 million dollars for country's Poverty Reduction and Business Environment Support Programme (PRBESP).

The loan is to support Government's budget through the Multi-Donor Budgetary Support (MDBS) framework in order to contribute to economic growth and poverty reduction by improving governance in relation to public financial management and private sector development.

The ADF facility, which is of mixed nature, comprises a grant element of 41.6 million dollars and the actual loan amount of 70.4 million dollars.

The loan, which has a grace period of 10 years, attracts a repayment period of 40 years and a maturity period of 50 years.

It also attracts a service charge of 0.75 per cent per annum on the principal amount of the loan disbursed and outstanding from time to time, with a commitment charge of 0.5 per cent per annum on undisbursed portion of the loan and an overall grant element of 79.42 per cent.

The PRBESP is designed to assist government to implement its private sector-led growth and poverty reduction agenda as set out in the Ghana Shared Growth and Development Agenda and the Private Sector Development Strategy.

The direct beneficiaries of the programme are key public sector institutions that provide business support services for private sector and support public financial management.

Mr James Klutse Avedzi, Chairman of Finance Committee of Parliament and member of Parliament for Ketu North, who moved a motion for the adoption of the report of the committee on the loan agreement, said the facility to inject additional resources into the national budget, would enable government to implement its gender policy actions and help improve gender parity, particularly in the areas of education, business ownership, access to resources, as well as political and public representation of women.

He said the direct budgetary support being provided by the facility would also enhance government's capacity for environmental management and sustainability.


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