Gov’t to minimize the use of sovereign guarantees

The Minister of Finance Seth Terkper says government is taking steps to minimize the use of sovereign guarantees, which are treated as Public Debt in the Nation’s Debt Sustainability Analysis band.

This will imply that State Own Enterprises, SOEs will now have to source for their own commercial loans and service them directly through escrow arrangements and where appropriate through Special Purpose Vehicles.

Mr. Terkper said this when he appeared on the Floor of Parliament to answer questions which stood in the name of the MP for Ho Central, Benjamin Komla Kpodo, on what actions the Ministry of Finance has taken on the proposal by the Ministry of Health for the funding and development of a Teaching Hospital in Ho that will be used by the University of Health and Allied Services.

He said as part of efforts at enhancing the capacity and quality of health care delivery in the country the Ministry of Health signed a memorandum of understanding for a commercial loan with STL Group for the establishment of the Teaching Hospital at a preliminary cost of two hundred and sixty-five million Dollars at Ho in the Volta region.

The Minister of Finance Seth Terkper was also quizzed by the MP for Kumawu, Philip Basoah on what necessitated the sale of the government of Ghana’s shares in GG-SSB.