Parliament approves 50.5 million Euro Fortis Bank Credit Agreement

Accra, Dec. 19, GNA - Parliament on Monday approved a Mixed Credit Facility between Government of Ghana and Fortis Bank NV of the BNP PARIBAS Group for 50,520,601.93 Euros to finance the procurement of logistics for the Ghana Police Service.

The credit facility is to finance the acquisition of vehicles and other security equipment to resource the Police to effectively promote security and manage security issues relating to Election 2012. The facility has a buyer credit agreement of 14,362,840.93 Euros and a commercial facility of 36,157,761 Euros.

The buyer credit agreement attracts a grace period of a year-and-a-half, with a repayment period of seven years, a maturity period of eight-and-a-half year and an interest of 3.53 per cent per annum.

The agreement attracts a commitment fee of 0.5 per cent per annum and a flat arrangement fee of 0.75 per cent.

The commercial facility of 36,157,761 Euros has a-year-and-a-half grace period, a repayment period of five years, a maturity period of six-and-half year, attracting an interest rate of 5.58 per cent per annum. It also draws a commitment fee of 0.5 per cent per annum and a flat arrangement fee of 0.75 per cent.

The total contract amount comes to some 49,288,901 Euros and an insurance premium of 1,231,700.93 Euros.

Mr James Klutse Avedzi, Chairman of Finance Committee of Parliament and Member of Parliament for Ketu North, who moved a motion for the adoption of the Committe's report on the facility, underscored importance of the facility to the maintenance of law and order in the country, especially during Election 2012. He explained that there was an urgent need to improve the logistical and operational capacity of the Ghana Police to ensure that they were positioned to combat crime and maintain law and order.

Mr Avedzi noted that with the discovery of oil, it was important that the Police was adequately resourced to face challenges that came with the resource. He said the acquisition of equipment and other accoutrements under the supply contract would increase the physical presence, enhance mobility and operational effectiveness of the Service.

Members of the House urged the Police to take the repair and maintenance of its vehicles and equipment serious to ensure that Ghana obtained optimum benefits from the procurement.