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28.05.2004 General News

Ghana and Netherlands sign €6.5 million grant support

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Accra, May 28, GNA - Ghana is to receive a grant of 6.5 million Euros (71.2 billion cedis) in budgetary support for the 2004 financial year from the Netherlands Government.

An agreement to that effect was signed on Friday between Dr Samuel Nii Noi Ashong; Minister of State of Economic Planning and Mr Mar van der Gaag, the Deputy Ambassador of the Royal Netherlands Embassy. The facility is the contribution of the Netherlands Government to the implementation of the Ghana Poverty Reduction Strategy. It is also in line with the Multi-Donor Budget Support (MDBS) Programme, whose framework memorandum was signed between Ghana and her Development Partners in June 2003.

The MDBS aims to harmonise Ghana Development Partners' commitment and to enhance the predictability of donor inflows while at the same time ensuring accountability from the recipient country. The signing of the grant agreement opens the way for the release of the base tranche of 3.25 million Euros (35.95 billion cedis). The remainder, which constituted the performance tranche, would be released later.

Dr Ashong said the country needed more resources to speed up its programme of development.

He said the Government was committed to maintaining the macro-economic gains, which had translated into the general improvement in all sectors of the economy.

Mr der Gaag commended the Government for its sound macro-economic policies and expressed the hope that it would be maintained to further improve the lives of the people.

The Netherlands Government has over the past five years provided a total of 111.9 million (899.3 billion cedis) in Budgetary and Balance of Payment support to Ghana.