Loan for liquidation of Ghana Airways approved

Accra, Feb. 16, GNA - Parliament, through a resolution on Friday approved a five million dollar loan agreement for the liquidation of Ghana Airways.

Part of the loan agreement would be used to pay the severance awards of former employees of the defunct airline.

The terms and conditions of the loan agreement between the government and Merchant Bank Limited include an arrangement fee of 0.75 per cent, a commitment fee of 0.25 per cent and a management fee of 0.5 per cent.

The loan is part of a 61-million dollar commercial loan agreement with some local banks, which was presented to Parliament in November last year.

Out of the total 61 million dollars presented, the House has already approved 51 million dollars for various sectoral projects, including that on Defence, United Nations Peacekeeping Operations, the National Identification System, the rehabilitation of Chanceries at New York and other places and the Ohene Djan and Baba Yara stadia. A report of the Finance Committee said: "After careful consideration of the loan, the committee is of the opinion that it would be immensely beneficial towards the resolution of the Ghana Airways problems."

Mr Stephen Balado-Manu, (NPP-Ahafo Ano South) contributing to the debate for the adoption of the report of the committee, sought to find out more about the assets of Ghana Airways and what was going to happen to them.

Mr Felix Owusu-Adjapong, Minister of Parliamentary Affairs, however, said the member could be furnished with the details of that information, if he so desired.