IFC to reopen 100 million dollars loan for GT

Accra, Oct. 9, GNA - The International Finance Commission (IFC) of the World Bank has agreed to reopen discussions with Government for the provision of a 100 million dollar loan to improve operations of Ghana Telecommunications Company (GT).

The stalemate in the agreement with IFC was due to the impasse between the Ghana Government and the former Malaysian Management of GT. Mr Yaw Osafo-Maafo, Minister of Finance and Economic Planning, said this in Accra on Thursday, when he briefed Journalists on the outcome of the just ended Commonwealth Finance Ministers Meeting held in Brunei and the World Bank Group and International Monetary Fund Governors Meeting. The Minister said the IFC said at the Meetings that it was fielding a mission to Ghana later this month to develop its lending programme over the next three years.

"It has also agreed to establish a programme to provide financial and technical support to complement Government's effort to establish a Venture Capital Fund for Small and Medium Enterprises development in Ghana."

Mr Osafo-Maafo also announced a number of financial commitments by development partners including BADEA whose Board has approved a 1.2 million dollars loan for the rehabilitation and expansion of the Bolgatanga Hospital.

The Abu Dabi Fund for Development agreed in principle to list Ghana as one of its beneficiary countries and thus co-finance various projects in the country.

He said the Israeli government had agreed to team up with Ghana to conduct research into HIV/AIDS, river blindness and agriculture with funds from the World Bank.

Others are the Netherlands Government, which is ready to support the Private Sector, and would be releasing funds to support the 2003 Budget. The Dubai Chamber of Commerce's has expressed its desire to cooperate with the Private Sector by reciprocal participation in trade exhibitions.

"Beside, the Right Honourable Susan Whelan of Canada has announced that CIDA has recommended the approval of 20 million dollars assistance to Ghana," Mr Osafo-Maafo said.

The Minister said at all the meetings, discussions on multilateral and bilateral support for Ghana was held and crucial outcomes regarding continuing support for the economy were achieved.

He said other issues discussed were the world economic situation, meeting of the Millennium Development Goals, delivery of basic services, debt relief under Highly Indebted Poor Countries (HIPC), promotion of investment and gender related issues.

Mr Osafo-Maafo said the Finance Ministers expressed disappointment at the outcome of the Cancun WTO Trade Ministerial Meeting, but they agreed on a number of actions to sustain and broaden world economic growth. "Among other things, these actions included the need for the US to address its fiscal and balance of payment deficits and need for developing countries to implement relevant policies to promote growth and poverty reduction."

Mr Osafo-Maafo said the promotion of investment received high attention at the meetings with the welcoming of proposals put forward by the Commonwealth Business Council to create an index and associated framework of business principles that could create greater portfolio equity to emerging markets on a commercially sustainable basis.