Ghana still pays interest on some loans - Minister

Yaw Osafo-Maafo, Minister of Finance on Friday explained in Parliament that although Ghana has joined the Highly Indebted Poor Countries (HIPC) initiative, the country still pays interest on some debts.
He said interests on bilateral loans were deferral and benefits from those from institutions like the IMF and the World Bank would be enjoyed after two years.
"There is a cut-off point on some of the loans, some of which are classified as bilateral, multi-lateral and commercial loans and interest on some of them have to be serviced."
Mr Osafo-Maafo was reacting to a challenge Mr Johnson Asiedu-Nketiah; NDC-Wenchi West posed to him as to why he indicated interest payment the country's domestic and external debts in the budget for the Services of Other Government Obligations for the year 2002 when the budget estimates were being debated.
The House approved approximately 6.9 trillion cedis for Other Government Obligations, which Mr Osafo-Maafo said covered statutory organisation like pensions, SSNIT pensions, interest on domestic and external debts, district assemblies common fund and the Ghana Education Trust Fund (GETFund).
Parliament also approved 234.6 billion cedis for the services of the Ministry of Finance. The services of the Government Machinery received 183.3 billion cedis, while National Media Commission (NMC) got 945 million cedis.
Others were the National Commission on Civic Education (NCCE), 16.9 billion cedis, the Public Services Commission (PSC), 1.7 billion cedis, the Audit Service, 25.9 billion cedis, while 39.2 billion cedis was approved for the Office of Parliament.
The House approved a loan agreement of 15.2 million dollars between Ghana and the African Development Fund to finance the Akatsi-Dzodze-Noepe road rehabilitation project.
According to a Business Statement, Parliament would rise "sine die" on Monday, March 18, after approving the rest of the estimates for other MDAs, while its Appointments Committee would meet to have a public hearing on Mr Justice Dixon Kwame Afreh for the appointment as a member of the Supreme Court.