Parliament approves $51m for sectoral activities

Accra, Nov. 29, GNA - Parliament on Wednesday approved a loan agreement totalling 51 million dollars between the Government and some local banks for various projects including the National Identification Programme.
The Cal Merchant Bank is to provide 10 million dollars for the National Identification Project while Merchant Bank Ghana Limited provides 20 million dollars for the rehabilitation of the Ohene Djan and Baba Yara stadiums.
The Ghana Navy is to benefit from a four-million-dollar facility from the Ghana International Bank for some programmes and Stanbic Bank Ghana Limited is providing 17 million dollars for the rehabilitation of some Chanceries and the United Nations Peacekeeping operations.
The Finance Committee, in its Report to the House, observed that the loan facility for the two stadiums would help to provide the needed funds to ensure that everything was ready for the CAN 2008 soccer tournament.
As to whether the Government's actions of sourcing loans from the local banks would not lead to the crowding out of the private sector, the report said: "the Deputy Finance Minister explained that the local banks involved are in excess liquidity and that the private sector's ability to raise loans from the banking sector would not be affected.
"After careful consideration and deliberation, the Committee is of the opinion that the programmes and activities for which the requests have been made are relevant and would be of immense benefit to the country.
"It was also the view of the Committee that the credit facilities negotiated by the Government to fund the projects and programmes are agreeable", the Report said.