The fragile situation of the nation's finances was recently disclosed by a report by the Parliamentary Finance Committee.
According to the Finance Committee's report on the Loan Facility Agreement between the government of Ghana and the AfreximBank for a loan of up to $750 million, without the approval of this loan amount, the nation would have gone bankrupt.
The Committee's report also noted that the Bank of Ghana's foreign reserves, which were formerly $9 billion but are now just approximately $3 billion, are decreasing.
The Bank of Ghana's rapidly declining reserves, which have dropped from $9 billion to roughly $3 billion, have made these problems even worse. The central bank's reserves might run out in a matter of months with a monthly demand of more than $600 million. If immediate action is not done to bolster the nation's reserves, in a few months."
The Finance Minister Ken Ofori-Atta reportedly told lawmakers that the government required this loan amount to support the reserve position of the Central Bank, which is documented in the committee report that has been brought before Parliament and approved by the House.
"The Minister further indicated that there is an urgent need for the government to secure the $750 million facility to help shore up the reserve position of the Bank of Ghana in order to avoid the nation defaulting on its obligations to other countries as well as to prevent the nation from entering insolvency."
Despite the facility appearing pricey on the surface, the minister claimed that it is a reflection of the general market circumstances. The Ofankor-Nsawam road, the Suame Interchange, the local road network project, and the construction of the flower pot interchange are among the 11 projects mentioned in the study that will be funded with the loan money.
Since then, Parliament has authorised the loan contract between the Ghanaian government and the African Export-Import Bank (AfreximBank).
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