Government needs $1bn loan to pay salaries, debts – Kwaku Kwarteng

Read Time: 2 minutes

Chairman of Parliament’s Finance Committee says government needs approval of the $1bn loan by Parliament to pay salaries and deal with other critical commitments.

According to Kwaku Kwarteng, the loan before Parliament will also assist the country meet its debt obligations.

The Minority in Parliament has stalled the passage of the loan for weeks now.

According to them, the government has not said what the funds would be used for. They, therefore, want government to provide the committee with full documentation on what exactly the money would be used for to enable them to make a meaningful decision.

But the Obuasi West legislator insists that the loan is critical for the country’s short-term survival.

“We will need to pay our salaries we will need to service our debt. There are things to do right now that require a facility like this to be procured.

“That is why some of us support government here and hope that we will really deal with our debt matters that are not recent and they have been piling up over the years that we would come together and formulate reformed actions that are needed to deal with this once and for all,” he told JoyNews on Tuesday.

The Finance Ministry is seeking Parliament’s approval for a $750 million loan facility agreement between AfreximBank and a $250 million loan agreement from a syndication of banks to finance Capital and Growth-related expenditures in the 2022 budget.

The loan, according to government, is critical to fixing the economy in the short term before a bailout can be agreed upon with the International Monetary Fund (IMF).

Meanwhile, it appears government may get $750 million after the Minority softened its stance.