A $750 million loan that the Finance Ministry requested has been authorised by the legislature.
Following the introduction of the motion for approval by Kwaku Kwarteng, chair of the finance committee, this occurred.
He claims that the loan will assist the government in obtaining the funding required to finish the infrastructure projects included in the 2022 budget.
"Mr. Speaker, having carefully read the agreement, which is a component of the government's agenda to raise money for infrastructure projects in the 2022 budget, I will consequently encourage this House to approve this facility so that Ghanaians may benefit from the benefits the facility would bring."
Vice Chairman of the Committee Patrick Boamah seconded his motion. Cassiel Ato Forson, the committee's ranking member, raised concern over the nation's debt.
He said that the interest and amortisation expenses for the same period completely ate up all of the tax income that had been accumulated since the first quarter of the year.
He said that the $12.9 billion raised over the period was insufficient to pay interest and amortisation for that same period.
"Mr. Speaker, let me to state for the record that I had significant reservations about Ghana's debt sustainability challenges. Currently, according to information from the Ministry of Finance posted on its website, it is evident that Ghana brought in a total of GHS12.9 billion in taxes during the first quarter. Debt servicing obligations alone accounted for GHS13.9 billion of this sum in interest and amortisation.
This simply indicates, Mr. Speaker, that the overall tax collection is insufficient to pay Ghana's debt, he said.
Meanwhile, a few Minority MPs rejected ratification.
The Bongo MP Edward Bawa stated that there was not a quorum in the House when the loan was granted.
What purpose will the financing serve?
The following projects will be funded with the $750 million, the government has told the legislature:
Suame Streets
interchange of sofoline
Flower pots are swapped
infrastructure for the whole African Games
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