House adopts report on Development Credit Agreement

Accra (Greater Accra), 30th June 99 -

Parliament on Tuesday adopted the report of the Finance Committee on Development Credit Agreement between Ghana and the International Development Association (IDA) for 180 million dollars to finance the Economic Reform Support Operations (ERSO two).

Giving the background information about the agreement, Commodore Steve Obimpeh (rtd), Chairman of the Committee, and mover of the motion, said in February this year, the government in collaboration with the International Monetary Fund and the World Bank prepared a Policy Framework paper.

Cdre Obimpeh said under ERSO two, IDA agreed to support the government's policy reform measures, spanning the period 1999-2001.

He indicated that the key activities of the programme, parts of which are already underway, initiated towards restructuring the economy, include measures to ensure macro economic stability, reforms in tax administration, financial sector reform, divestiture and the implementation of the Medium Term Expenditure Framework.

The Committee Chairman said the credit, which forms part of external inflows projected to support this year's budget, is aimed among other things, at accelerating the overall growth of the economy, achieving a single digit rate of inflation, and improving the country's external payments position.

Cdre Obimpeh said the repayment of the principal amount of the credit, which is spread over a period of 40 years, shall be paid in semi-annual installments payable on each first days of August and February, beginning August one, 2009 and ending February one, 2039.

He indicated that the loan would enjoy a 10-year moratorium, and said he hoped the facility would go a long way to boost government's reform programme in order to develop a dynamic and efficient public sector to support a sustainable private sector-led economic development.

Before the chairman could move the motion, members of the Minority pleaded with Mr Freddie Blay, Second Deputy Speaker, who was in the chair to suspend debate to enable members on that side of the House to study the Committee's report so as to make meaningful contribution.

Initially, the Speaker overruled the suggestion by the Minority and allowed the debate to commence.

However, after a handful of members from the Majority had made their contributions in support of the motion, without any sign of the Minority contributing, Mr Blay changed his mind and deferred the debate to enable the Minority to study the report.

In another development, the Road Tolls (Amendment) Bill was read the Second Time.

Mr Steve Senu Akorli, Deputy Minister of Roads and Transport said the purpose of the Bill is to amend the Tolls Decree, 1973 (NRCD 153) to limit the categories of vehicles, which are exempted from the payment of tolls and to consolidate the existing enactment.

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