Ghana gets OPEC loan

Vienna - Twelve agreements on loans totaling $94.42 million were signed Thursday between the OPEC fund for international development and Ghana plus nine other developing countries in Africa, Europe and the Caribbean.

The loans were extended to Albania, Benin, Cuba, Ethiopia, Ghana, Malawi, Mauritania, Morocco, Mozambique and Senegal.

Eleven of the loans will help support public sector projects in the areas of transportation, education, multisectoral water supply and sewerage, while one will provide debt relief within the context of the enhanced heavily indebted poor countries initiative.

All 11 public sector projects will be co-financed by the concerned governments and by a number of international development institutions, including the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Islamic Development Bank, the African Development Fund, the International Development Association as well as the International Fund for Agricultural Development.

The majority of OPEC fund project loans carry interest at rates ranging from 1 percent to 1.25 percent and have a maturity of 20 years, including a grace period of five years. As of the end of May 2002, cumulative public sector lending of the OPEC fund for project and program financing, balance of payments support and debt relief stood at $5.0 billion. A further $137.8 million had been extended in support of private sector operations. Total commitments, inclusive of grants and contributions to other international institutions, had reached $6.3 billion and benefited 109 countries. Total disbursements had amounted to $4.2 billion.