General News of 2014-01-19

CDB officials demand more oil in loan renegotiation

Representatives of the Chinese Development Bank (CDB) are in Ghana to renegotiate the US$3 billion deal and ask for an additional 2,000 barrels of crude oil to the earlier 13,000 barrels a day agreed between them and government.
The Chinese initially got Ghana to use its share of crude from the Jubilee Oil Field as collateral for the US$3 billion loan. But they now want an upward adjustment of the daily quota from 13,000 barrels to 15,000 barrels.
A reliable source at the Ministry of Finance told Adom News it is unclear whether Ghana would agree to the additional demands by the Chinese.
The Ghanaian Parliament gave its assent to the agreement in February 2012 under the leadership of the then Deputy Speaker and now Speaker, Right Honorable Edward Doe Adjaho.
Meanwhile, the Member of Parliament for Dormaa Central is urging the government of Ghana to throw in the towel and request for the cancellation of the deal, pay the penalty and save Ghana from sinking further.
“If you look at how things are going, it would be prudent for the government to cancel it instead of renegotiating which would put extreme pressure on the economy of Ghana,” he said.
He was speaking in an interview with Afia Pokua on ‘Burning Issues’ on Adom FM.
“If the government wants to opt out of the deal, it can give 10 days notification to the other party,” the MP said.
According to him, things would get worse because of the exchange rate and interest accruing on the loan by the day.
“Government’s intention of renegotiation of the deal should come before the Parliament,” he said.
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