$15bn China loan will come to parliament - Government

Deputy Finance Minister Kwaku Kwarteng has disclosed that the $15billion loan promised by the Chinese government will be sent to parliament for deliberation.

He explained that even though an understanding has been reached with the Chinese government, “the terms governing this facility will be negotiated and that until it has been laid before parliament it will not be effective”.

Following a four-day trip to China, Vice President Dr Mahamudu Bawumia announced a package from the Chinese government to Ghana for the mutual benefit of the two nations, with some US$15 billion being injected into Ghana’s economy.

The Minority in parliament has raised issued with the loan, indicating that it did not receive parliamentary approval. Further, former Finance minister Cassiel Ato Forson insists it will have a negative impact on the country’s debt stock.

However, Mr Kwarteng has cautioned the NDC MPs not to rush to comment when they lack sufficient information about the loan facility, indicating that the details are yet to be addressed by legislators.

Furthermore he revealed that government was operating based on a particular target for debt-to-GDP ratio.

“We are targeting 70.9 per cent debt-to-GDP ratio for 2017. If my friend Ato Forson realises that because of the way we are taking this facility for this budget year that we stand the risk of violating our own target then that is a legitimate concern. The details of the agreement will come to parliament as the MoU says and we have the opportunity to approve it or say that this is how we want to stagger it.

In fact it appears to me…that it will be directed as specific projects so you decide when to sign the subsidiary agreement for it; all these are details that are yet to be worked out,” he told Joy FM’s Israel Laryea in an interview on Tuesday, June 27.