Ghana would’ve gone bankrupt without approval of US$750 million loan - Report

A recent report by the Finance Committee of Parliament has detailed the serious economic crisis Ghana is facing.

The report revealed that the country would have gone bankrupt if the Loan Facility Agreement between the government of Ghana and the AfreximBank for a loan of up to $750 million, had not been approved.

The report added that the Bank of Ghana’s foreign reserves is being dwindled and has moved from $9 billion to about $3 billion.

“These challenges are further exacerbated by the rapidly dwindling reserves of the Bank of Ghana which has declined from $9 billion to about $3 billion. With a monthly demand of over $600 million, the reserves of the central bank may be exhausted in a few months if urgent steps are not taken to shore up the countries reserves.”

The report further stated that the country’s Finance Minister Ken Ofori-Atta told the House that the country needed this loan amount to shore up the reserve position of the Central Bank.

“The Minister further indicated that, there is an urgent need for the government to secure the $750 million facility to help shore up the reserve position of the Bank of Ghana to avoid the country defaulting on its international commitments and also to avoid the country moving into insolvency.”

Meanwhile, the report has outlined some 11 projects the loan amount will be used to finance.

These projects include the Ofankor – Nsawam road, the Suame Interchange and local road network project as well as the completion of the flower pot interchange.