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28.04.2004 Business & Finance

Ghana and Germany sign six million Euros Loan Agreement

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Accra, April 28, GNA- Germany is extending a 6.0 million Euros (65.2 billion cedis) support to Ghana for the implementation of the Ghana Poverty Reduction Strategy (GPRS).

The loan, which is being given under the framework of the Multi-Donor Budget Support programme, constituted Germany's contribution for the 2004 financial year.

An agreement to that effect was signed on Tuesday between Dr Samuel Nii Noi Ashong, The Minister of State, Finance and Economic Planning and Dr Wolfgang Weth, Country Director, KFW Accra Office.

A statement signed by Cecilia Akwetey, Head, Public Relations at the Ministry of Finance, said the concessionary loan would attract an interest of 0.75 per cent per annum with a repayment period of 40 years, including a 10-year grace period.

The signing of the loan agreement has paved the way for the release of the base Tranche of three million Euros. The performance Tranche of three million Euros would be released later in the year, the statement said.