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13.05.2004 General News

Gov't to provide answers to queries on CNT loan

Gov't to provide answers to queries on CNT loan
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Accra, May 13, GNA - Government says it would soon address public concerns about the 300 million-dollar loan that it was about to contract from CNT Group Holdings Limited and the CNT Construction Investment Limited, a construction and investment financing company in the United Kingdom. Finance Minister, Mr Yaw Osafo-Maafo told a press conference on Thursday that the Government would provide answers to queries relating to the genuineness or otherwise of the loan, which was duly approved by Parliament in April. He said proper due diligence was carried out on the facility and all the necessary documentation were placed in Parliament over a month before final approval. Mr Osafo-Maafo said the telephone numbers and addresses being quoted in some sections of the media differed totally from those on the original agreement, which, he said, could be accessed from the Ministry of Finance and Parliament. The Minister, therefore, asked the critics to look for the copies of the original agreement from either Parliament or the Finance ministry and see if the addresses tallied. Parliament on Tuesday, April 13 by a resolution of 130 votes; approved the 300 million dollars loan for the financing of projects under the President's Special Initiatives (PSI) and the road transport and railways sectors. The credit covers the rehabilitation of the Eastern Rail Line, road works involving the upgrading of the Achimota - Kumasi road, PSI's Garment Village and the establishment of six cassava starch companies. The repayment of the loan covers 15 years with 0.65 per cent interest rate, an attraction of a management fee and financing cost of four per cent.

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