A finance committee report on the loan facility agreement between the government of Ghana and AfreximBank for a loan of up to $750 million, said the country would have gone bankrupt without the approval of the loan amount .
A recent report by Parliament’s Finance Committee revealed the precarious state of the country’s finances indicating that the Bank of Ghana’s foreign exchange reserves are declining from $9 billion to around $3 billion. .
The report states: “These challenges are further exacerbated by the rapid decline in the Bank of Ghana’s reserves, which have fallen from $9 billion to around $3 billion. With a monthly demand of more than $600 million, the central bank’s reserves could be depleted within months unless urgent steps are taken to shore up the country’s reserves.
Finance Minister Ken Ofori-Atta told MPs that the country needed the loan amount to shore up the reserve position of the Central Bank.
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 to prevent the country from defaulting on its international commitments and also to prevent the country from falling into place. insolvency.”
He mentioned that even though the installation seems expensive at first glance, it reflects the general market conditions.
The report mentions 11 projects that the loan proceeds will be used to finance including the Ofankor – Nsawam road, Suame interchange and local road network project as well as the completion of the flower pot interchange.
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