Ghana gets 25 million-Euro grant from the Netherlands

The Netherlands Thursday granted Ghana 25 million-Euros (about 161 billion cedis) as Balance of Payments support for the 2002 budget.

The facility is the Dutch government's special contribution towards Ghana's macro-economic stability, in the wake of the 11 September terrorist attacks in the US.

The attacks have had negative consequences on the global economy, especially on developing countries.

Ghanaian Finance Minister, Yaw Osafo-Maafo and the Netherlands Ambassador, Alexander Heldring signed the grant agreement in fulfilment of a pledge made by the Dutch Minister of Development Co-operation, Eveline Herfkens when she visited Ghana recently.

Osafo-Maafo said the money was timely for Ghana's efforts to put the economy back on track and to enhance the growth of the private sector.

The grant would also boost the government's poverty reduction drive as well as support for the water, transport and health sectors. Heldring said his country had structural development co-operation with 20 selected countries, including Ghana.

"This special relationship implies that if a country such as Ghana is confronted with a serious problem caused by circumstances beyond its control, the Netherlands will come to her assistance," he added.

In January, the Dutch Government provided 122.5 million Guilders (about 55 million dollars) Balance of Payment support to Ghana, to offset external shocks from high oil prices and low commodity prices.