HIPC Initiative Is Govt?s Bane ? Bagbin

The apparent failure of the NPP government to source private financing for its development projects has been blamed on the adoption of the world bank/IMF highly indebted poor countries (HIPC) programme.

The Housing loan, the International Finance Company (IFC) $1billion loan fiasco and the China New Technics Construction Investment (CNTCI), $300million loan (which is yet to materialize) have been cited as the instances that the government had failed in its bid to attract loans from outside its traditional sources ? the world bank and the IMF.

The minority leader, Hon. Bagbin who also represents the Nadowli north constituency for the NDC said countries undergoing the HIPC programme were not for instance permitted to contract non-concessionary loans beyond $75million in a year.

?That is why the government is having problems in getting private capital, said Hon. Bagbin, adding, ?the first problem is the housing loan, the second is the IFC and the third is the CNTCI loan. According to him, the HIPC programme is a straight jacket programme where you are asked to do specific things before you can access the relief.

?The government of the day is having that difficulty and it has to go out to try to look for private capital which is not forthcoming, said Bagbin.