The Speaker of Parliament, Alban Sumana Kingsford Bagbin, has referred a loan agreement between Government of Ghana and the International Development Association (IDA) of the World Bank Group to the House Committee on Finance for consideration. The agreement which forms part of the government’s effort at stabilising the economy through a series of debt restructuring with its domestic and external creditors was presented on the floor of Parliament for the first time on Wednesday by the Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, on behalf of the Minister of Finance Mohammed Amin Adam.

The financing agreement comprising an amount of US$250 million is to be used for the Ghana Financial Stability Project (GFSP). According to Mr. Kyei-Mensah-Bonsu in a brief explanation, the amount is part of the government’s ongoing debt restructuring exercise with its creditors.

He said, “It’s a critical note in the restructuring that government has embarked on and that agreement from discussion within World Bank/IMF group preparatory to where we are today. It was part of the discourse that we engaged in so that is what it’s supposed to do to solidify the platform for us.”

The minority group in Parliament were initially opposed to the presentation of the paper because it was not being done by anyone from the Ministry of Finance as neither Minister nor his deputies was present in the House for the preliminary introduction of the item. However, Haruna Iddrisu (MP, Tamale South)’s concern was for the government to clarify whether the financing agreement was a concessionary loan or not as Ghana has been restricted to not borrow an amount exceeding $250 million. House Speaker Bagbin eventually permitted the Minister for Parliamentary Affairs to make the presentation on behalf of the Finance Minister and then made consequential referral to the Committee on Finance for consideration as the rules of the House allows for an MP, chairman of a committee or a cabinet minister to make present such items on behalf of a minister who was absent at the time.

The Finance Committee will meet with the Minister and relevant stakeholders to consider the financing agreement and then report back to Parliament for consideration by the plenary.