Chairman of the Finance Committee in Parliament and Member of Parliament for Okaikoi Central, Patrick Yaw Boamah, has disclosed that the government is seeking to mobilize some GH¢15 billion in funding to support the banking sector.
This, he said, has become imperative due to the difficulties faced by the sector following the Domestic Debt Exchange Program (DDEP).
According to him, the government, however, faces some challenges in the allocation of some $250 million credit line from the World Bank aimed at stabilizing the sector.
Speaking to the media on the efforts in Parliament on Monday, July 29, Patrick Boamah pointed out the government, in the 2024 Budget, indicated it is going to support the financial sector through the Ghana Financial Sector Stabilization Fund with a Cedi equivalent of $500 million and also seek World Bank financing of $250 million to support the program.
The government’s aim to mobilize the GH¢15 billion, he said, was, however, opposed by the Minority, which is demanding the fund to be legally established through an Act of Parliament.
He clarified that the proposed funding from the World Bank differs from typical government funds like the Road Fund or Zongo Development Fund.
He said, “It’s a credit line from the World Bank where the banks will apply and analysis will be made before disbursement is made directly to the banks.”
He assured that the Finance Committee took a decision by majority, and the report is being prepared to be laid.
The Chairman also addressed some tax waivers of $1.5 million and €38 million that the government is seeking for the Ghana Bauxite Company
He disclosed that the government’s stake in that entity has increased to over 23.8% due to this capital injection and stressed the move is expected to enhance the company’s production capacity from 500,000 tons to a million tons, creating jobs and boosting tax contributions.
These approvals, he said, were supported by the minority and commended the Caucus for the effort.