By Jeorge Wilson KINGSON
Parliament has approved a loan of US$141 million between government and the African Development Fund to support the 2008 budget through the enhanced budgetary support system; the Multi Donor Budgetary Support (MDBS).
The fund is meant for the improvement of governance in relation to public finance management, energy reforms and private sector development. It will also be used to support government’s poverty reduction strategies.
At a meeting with the parliamentary committee on finance, a technical team from the Ministry of Finance and Economic Planning stated that the program will provide Ghana with a conducive and cost effective business environment, a transparent budget process and an efficient public service.
The terms and conditions of the loan include a ten year grace period, 0.5% commitment charge per annum on disbursed portion of the loan, a repayment period of 30 years which is exclusive of grace period and a service charge of 0.75% per annum on the principal amount of the loan disbursed.
Minister of State at MOFEP, Dr. Anthony Akoto Osei, noted that the loan would be disbursed in three equal tranches and this would be done within three years commencing this year.
There are a number of reforms currently being undertaken by government as part of efforts aimed at contributing to economic growth and poverty reduction.
Though a number of successes have been achieved, the reforms have been reportedly hit by a number of challenges, notable among them are inadequate physical infrastructure, weak capacity of the public sector to deliver services to the private sector, the need to improve budget transparency and the weakness in the payroll management and administration.
Parliament has approved a loan of US$141 million between government and the African Development Fund to support the 2008 budget through the enhanced budgetary support system; the Multi Donor Budgetary Support (MDBS).
The fund is meant for the improvement of governance in relation to public finance management, energy reforms and private sector development. It will also be used to support government’s poverty reduction strategies.
At a meeting with the parliamentary committee on finance, a technical team from the Ministry of Finance and Economic Planning stated that the program will provide Ghana with a conducive and cost effective business environment, a transparent budget process and an efficient public service.
The terms and conditions of the loan include a ten year grace period, 0.5% commitment charge per annum on disbursed portion of the loan, a repayment period of 30 years which is exclusive of grace period and a service charge of 0.75% per annum on the principal amount of the loan disbursed.
Minister of State at MOFEP, Dr. Anthony Akoto Osei, noted that the loan would be disbursed in three equal tranches and this would be done within three years commencing this year.
There are a number of reforms currently being undertaken by government as part of efforts aimed at contributing to economic growth and poverty reduction.
Though a number of successes have been achieved, the reforms have been reportedly hit by a number of challenges, notable among them are inadequate physical infrastructure, weak capacity of the public sector to deliver services to the private sector, the need to improve budget transparency and the weakness in the payroll management and administration.
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